- Inspection year
- 2022
- Report date
- 23-Mar-2023
- PCAOB release
- 104-2023-043
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 5
- 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 A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The firm's substantive procedures to test the unit cost of certain inventory included selecting a sample of inventory items for testing. The following deficiencies were identified: · The firm did not perform any substantive procedures to test whether this inventory was recorded at the lower of cost or net realizable value. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Inventory | The firm's substantive procedures to test the unit cost of certain inventory included selecting a sample of inventory items for testing. The following deficiencies were identified: · The firm did not perform any procedures to test or test any controls over the accuracy and completeness of certain data and reports used in its substantive testing of this inventory. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 3 | Inventory | The firm's approach for substantively testing the reserve for excess and obsolete inventory was to develop an independent expectation as a range. The following deficiencies were identified: · The firm did not perform substantive procedures beyond inquiry to demonstrate that it had a reasonable basis for its assumption that certain items did not require a reserve including considering that the issuer recorded a reserve for this inventory during the financial reporting close process. (AS 2501.22; AS 2810.03) Financial statement audit only | AS 2501.22; AS 2810.3 | Significant risk |
| 4 | Inventory | The firm's approach for substantively testing the reserve for excess and obsolete inventory was to develop an independent expectation as a range. The following deficiencies were identified: · The firm did not perform substantive procedures beyond inquiry to demonstrate that it had a reasonable basis for certain other assumptions. (AS 2501.22) Financial statement audit only | AS 2501.22 | Significant risk |
| 5 | Inventory | The firm's approach for substantively testing the reserve for excess and obsolete inventory was to develop an independent expectation as a range. The following deficiencies were identified: · The firm did not perform any substantive procedures to demonstrate that its independent expectation as a range encompassed only reasonable outcomes and was supported by sufficient appropriate evidence. (AS 2501.25) Financial statement audit only | AS 2501.25 | Significant risk |
| 6 | Inventory | The firm's approach for substantively testing the reserve for excess and obsolete inventory was to develop an independent expectation as a range. The following deficiencies were identified: · The firm did not perform procedures beyond inquiry to evaluate the difference between its independent expectation as a range and the issuer's recorded reserve. (AS 2501.26; AS 2810.13) Financial statement audit only | AS 2501.26; AS 2810.13 | Significant risk |