- Inspection year
- 2022
- Report date
- 27-Mar-2023
- PCAOB release
- 104-2023-048
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 10
- Report
- View PDF ↗
Deficiencies (9)
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 | Revenue | To test revenue the firm selected a sample of cash receipts from a journal of cash receipts. The following deficiencies were identified: · The firm drew its sample from the population of cash receipts that were not necessarily representative of revenue recorded during the year. (AS 2315.17) Financial statement audit only | AS 2315.17 | |
| 2 | Revenue | To test revenue the firm selected a sample of cash receipts from a journal of cash receipts. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the completeness of the journal of cash receipts. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 3 | Revenue | To test revenue the firm selected a sample of cash receipts from a journal of cash receipts. The following deficiencies were identified: · The firm did not perform sufficient substantive procedures to test whether revenue was recognized in the appropriate period because it limited its testing to revenue transactions before the end of the year. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Revenue | To test revenue the firm selected a sample of cash receipts from a journal of cash receipts. The following deficiencies were identified: · The firm did not perform procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 5 | Debt | The firm did not perform any procedures to evaluate whether debt was appropriately accounted for in conformity with generally accepted accounting principles. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Debt | To test the debt the firm sent positive confirmation requests to the noteholders. For certain positive confirmation requests for which it did not receive a response the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the debt was complete at year end. (AS 2310.31) Financial statement audit only | AS 2310.31 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | Prior to the report release date the firm did not complete all necessary audit procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm completed the review of a significant number of auditing procedures after the report release date. (AS 1105.04; AS 1201.05; AS 1215.15) Financial statement audit only | AS 1105.4; AS 1201.5; AS 1215.15 | |
| 2 | Revenue | The firm did not perform procedures to evaluate whether the issuer recognized revenue in conformity with the relevant steps required under FASB ASC Topic 606. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not perform sufficient substantive procedures to test whether revenue was recognized in the appropriate period because it limited its testing to revenue transactions before the end of the year. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 |