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KPMG Cardenas Dosal, S.C.
Mexico · KPMG International Cooperative · Triennially Inspected
- Inspection year
- 2021
- Report date
- 06-Oct-2022
- PCAOB release
- 104-2022-237
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 15
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (15)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | The issuer acquired certain intangible assets through business combinations. The following deficiencies were identified: - The firm did not test any controls over the determination of the estimated useful lives assigned to these intangible assets. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Intangible Assets | The issuer acquired certain intangible assets through business combinations. The following deficiencies were identified: - The firm did not identify and evaluate the significance to the financial statements of the issuer's recording of these assets as indefinite lived intangible assets rather than finite lived intangible assets with estimated useful lives based on their remaining contractual terms in conformity with International Accounting Standard (IAS) 38 Intangible Assets. (AS 2810.30 and .31) Both financial statement and ICFR audits | AS 2810.30; AS 2810.31 | |
| 3 | Goodwill | The issuer estimated the value-in-use (VIU) of its cash-generating units ('CGUs') to evaluate goodwill for impairment. For two of the issuer's CGUs the firm did not evaluate the significance to the financial statements of the issuer's use of estimated post-tax future cash flows and a post-tax discount rate to estimate the VIU of the CGUs rather than using estimated pre-tax future cash flows and a pre-tax discount rate in the VIU calculations in conformity with IAS 36 Impairment of Assets ('IAS 36'). (AS 2810.30) Both financial statement and ICFR audits | AS 2810.30 | |
| 4 | Revenue | The firm sent positive confirmation requests to the issuer's customers for a sample of certain revenue transactions. For positive confirmations that were not returned the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the delivery of services had occurred for those selections. (AS 2310.31) Both financial statement and ICFR audits | AS 2310.31 |
Issuer B11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer calculated depreciation and amortization ('D&A') of its long-lived assets based on their economic lives without consideration of any legal or other limits on the use of the assets. The firm did not identify and evaluate the significance to the financial statements of the issuer's use of the economic life of certain long-lived assets to calculate D&A rather than using the contractual terms of the assets which for certain properties were shorter in duration than their respective economic lives in conformity with IAS 16 Property Plant and Equipment. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Long-Lived Assets | The issuer estimated the VIU of its CGUs to evaluate long-lived assets for impairment. For certain CGUs the firm did not identify and evaluate the significance to the financial statements of the issuer's: - Exclusion of the valuation of land associated with the CGUs in the determination of their carrying amounts rather than including such amounts in the determination in conformity with IAS 36. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 3 | Long-Lived Assets | The issuer estimated the VIU of its CGUs to evaluate long-lived assets for impairment. For certain CGUs the firm did not identify and evaluate the significance to the financial statements of the issuer's: - Exclusion of the estimated net cash flows if any to be received (or paid) from the disposal of the CGUs at the end of their useful life when estimating their VIU rather than including such amounts in the VIU calculations in conformity with IAS 36. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 4 | Long-Lived Assets | The issuer estimated the VIU of its CGUs to evaluate long-lived assets for impairment. For certain CGUs the firm did not identify and evaluate the significance to the financial statements of the issuer's: - Use of a 25-year remaining life of the assets of the CGUs in estimating their future cash flows for purposes of estimating their VIU rather than using the shorter of the economic life or contractual term of the assets in the VIU calculations in conformity with IAS 36. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 5 | Long-Lived Assets | The issuer estimated the VIU of its CGUs to evaluate long-lived assets for impairment. For certain CGUs the firm did not identify and evaluate the significance to the financial statements of the issuer's: - Inclusion in its estimation of the CGUs' VIU of estimated future cash flows related to planned major maintenance that would result in improvements or enhancements to the CGUs' performance rather than excluding such cash flows from the VIU calculations in conformity with IAS 36. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 6 | Long-Lived Assets | For certain CGUs the firm also did not perform procedures to evaluate whether: - The estimated future cash outflows related to corporate expenses the issuer allocated to the CGUs and used to estimate their VIU could be attributed directly or were appropriately allocated on a reasonable and consistent basis to the use of the CGUs' assets in conformity with IAS 36. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 7 | Long-Lived Assets | For certain CGUs the firm also did not perform procedures to evaluate whether: - The estimated future cash outflows related to certain duties should be included in the issuer's estimation of the CGUs' VIU in conformity with IAS 36 (AS 2810.30). Financial statement audit only | AS 2810.30 | |
| 8 | Long-Lived Assets | For certain CGUs the firm did not sufficiently test the accuracy and completeness of certain data used by the issuer to estimate the CGUs' VIU because its procedures were limited to agreeing the data to certain systems for which the firm did not test information technology general controls. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 9 | Long-Lived Assets | The firm did not test or in the alternative identify and test controls over the accuracy and completeness of certain issuer-produced data used by company-employed specialists to develop certain inputs used in the D&A and VIU calculations. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | |
| 10 | Long-Lived Assets | The firm did not perform any procedures to identify the significant assumptions used by the issuer in its VIU calculations of certain CGUs. (AS 2501.15) Financial statement audit only | AS 2501.15 | |
| 11 | Long-Lived Assets | The firm did not perform sufficient procedures to evaluate the reasonableness of certain assumptions included in the VIU calculations including taking into account the issuer's ability to carry out its stated intentions regarding the assumptions because its procedures were limited to comparing those assumptions to historical information. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 |