- Inspection year
- 2022
- Report date
- 25-May-2023
- PCAOB release
- 104-2023-084
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (4)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | A Significant Estimate | The firm's approach for substantively testing the significant estimate was to review and test management's process. The following deficiencies were identified: · For a portion of the estimate the firm did not perform sufficient procedures to evaluate the reasonableness of certain assumptions used by the issuer to develop the estimate because the firm did not evaluate whether the issuer had a reasonable basis for the assumptions used. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 2 | A Significant Estimate | The firm's approach for substantively testing the significant estimate was to review and test management's process. The following deficiencies were identified: · For another portion of the estimate the firm performed procedures to evaluate the reasonableness of the estimate including the reasonableness of certain assumptions using specific items selected by the firm and information prepared by external specialists engaged by the issuer. The firm did not perform any procedures with respect to the use of the work of the issuer's specialists as audit evidence. (AS 1105.A1—.A10) Financial statement audit only | AS 1105.A1; AS 1105.A10; AS 1105.A2; AS 1105.A3; AS 1105.A4; AS 1105.A5; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9 | |
| 3 | A Significant Estimate | The firm's approach for substantively testing the significant estimate was to review and test management's process. The following deficiencies were identified: · For another portion of the estimate the firm performed procedures to evaluate the reasonableness of the estimate including the reasonableness of certain assumptions using specific items selected by the firm and information prepared by external specialists engaged by the issuer. The firm did not perform any procedures to test the remaining balance of the estimate. (AS 1105.27; AS 2301.08 and .13) Financial statement audit only | AS 1105.27; AS 2301.8; AS 2301.13 | |
| 4 | Journal Entries | The firm did not select journal entries and other adjustments for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |