- Inspection year
- 2022
- Report date
- 11-May-2023
- PCAOB release
- 104-2023-069
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The issuer disclosed that it recognized revenue in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers. For certain revenue transactions the firm did not (1) take into account certain contradictory audit evidence and (2) perform procedures to evaluate whether (a) performance obligations were appropriately identified (b) the determination of transaction prices was appropriate (c) the issuer was acting as either a principal or agent for goods or services and (d) it was appropriate to recognize revenue at a point in time or over time. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 | |
| 2 | Revenue and Related Accounts | The issuer disclosed that it recognized revenue in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers. The firm did not perform any procedures to test or test any controls over the accuracy and completeness of data and reports produced by the issuer that the firm used in its testing of revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 3 | Revenue and Related Accounts | The firm did not perform any substantive procedures to test a portion of a revenue related account. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Long-Lived Assets | The issuer held certain long-lived assets that were recorded at cost and reviewed by the issuer for indicators of potential impairment. The firm did not perform any substantive procedures to test the existence of these long-lived assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Long-Lived Assets | The issuer held certain long-lived assets that were recorded at cost and reviewed by the issuer for indicators of potential impairment. The firm did not sufficiently test the valuation of certain of these long-lived assets because the firm did not perform any procedures to evaluate the relevance and reliability of information used in the issuer's impairment assessment. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 6 | Financial Reporting and Close | The issuer recorded certain adjustments as part of its year-end financial reporting process. The firm did not perform any procedures to examine these adjustments. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 7 | Uncorrected Misstatements | The firm identified uncorrected misstatements in the current year audit. The firm did not evaluate whether the uncorrected misstatements were material individually or in combination with other misstatements. (AS 2810.17) Financial statement audit only | AS 2810.17 |