- Inspection year
- 2022
- Report date
- 27-Mar-2023
- PCAOB release
- 104-2023-045a
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (3)
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 | The issuer operates a recreational vehicle (RV) resort and earns revenue from site rental fees. The issuer also earns revenue from other services and from retail sales from a general store and recreational vehicle parts store. To test site rental revenue the firm selected a sample from a system-generated arrival report for a dual-purpose test of controls and substantive procedures. The firm's procedures did not address whether revenue was recognized only when customers occupied spaces as the firm did not perform any procedures to test or test any controls over the accuracy and completeness of the check in and check out dates from the system-generated arrival report used in its testing. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 2 | Revenue | The issuer operates a recreational vehicle (RV) resort and earns revenue from site rental fees. The issuer also earns revenue from other services and from retail sales from a general store and recreational vehicle parts store. To test site rental revenue the firm selected a sample from a system-generated arrival report for a dual-purpose test of controls and substantive procedures. The sample size used in its substantive procedures was too small to provide sufficient appropriate audit evidence because the firm used a sample size for control testing which did not take into account tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population. (AS 2315.16 .19 .23 .23A and .44) Financial statement audit only | AS 2315.16; AS 2315.19; AS 2315.23; AS 2315.44; AS 2315.23A | Significant risk |
| 3 | Revenue | The issuer operates a recreational vehicle (RV) resort and earns revenue from site rental fees. The issuer also earns revenue from other services and from retail sales from a general store and recreational vehicle parts store. For revenue recognized from retail sales and one type of service the firm did not perform any substantive procedures to test this revenue. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |