- Inspection year
- 2021
- Report date
- 29-Sep-2022
- PCAOB release
- 104-2022-216
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (6)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | For the sales transactions selected for testing the firm did not perform procedures to test whether revenue recognition criteria had been satisfied. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Inventory | The firm did not perform sufficient procedures to test the existence of certain inventory at year end. Specifically the firm's observation procedures were not suitable because they did not provide any evidence of the quantity and physical condition of the inventory. (AS 2510.09) Financial statement audit only | AS 2510.9 | |
| 3 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | For the sales transactions selected for testing the firm did not perform procedures to test whether revenue recognition criteria had been satisfied. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Leases | The firm's approach for substantively testing the present value of operating lease right-of-use assets and operating lease liabilities was to review and test management's process. The firm did not perform any procedures to evaluate the reasonableness of the discount rate used to determine the present value. (AS 2501.09 .10 and .11) [This citation refers to AS 2501 Auditing Accounting Estimates which was in effect for this audit. This standard was replaced by AS 2501 Auditing Accounting Estimates Including Fair Value Measurements which became effective for audits of financial statements ending on or after December 15 2020.] Financial statement audit only | AS 2501.9; AS 2501.10; AS 2501.11 |