- Inspection year
- 2022
- Report date
- 25-May-2023
- PCAOB release
- 104-2023-077a
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (2)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer entered into contracts with certain customers which included terms and conditions specific to (1) minimum delivery amounts (2) pricing based on a market or index rate and/or (3) payment provisions in the event of default. The issuer recognized revenue from those contracts in accordance with FASB ASC Topic 606 Revenue from Contracts with Customers. The firm did not perform any procedures to evaluate whether these contracts should have instead been accounted for as derivative instruments in conformity with FASB ASC Topic 815 Derivatives and Hedging. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 | |
| 2 | Long-Lived Assets | The issuer identified certain impairment indicators during the year and prepared an undiscounted cash flow analysis to evaluate its long-lived assets for impairment. The firm did not perform procedures to test the issuer's evaluation of long-lived assets for impairment beyond obtaining and reading the issuer's undiscounted cash flow analysis and a memorandum prepared by the issuer related to its impairment assessment. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |