- Inspection year
- 2022
- Report date
- 07-Jun-2023
- PCAOB release
- 104-2023-090
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- —
- 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 | Warrants | The issuer engaged a specialist to determine the fair value of certain warrants it reported as equity. The firm's approach for substantively testing the fair value of these warrants was to test the issuer's process. The firm did not evaluate the relevance of certain data the company's specialist used to develop a significant assumption. (AS 1105.A8a) Financial statement audit only | AS 1105.A8b | Significant risk |
| 2 | Warrants | The issuer engaged a specialist to determine the fair value of certain warrants it reported as equity. The firm's approach for substantively testing the fair value of these warrants was to test the issuer's process. The firm did not evaluate the reasonableness of certain significant assumptions that the company's specialist developed. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 3 | Warrants | The firm did not identify and evaluate a GAAP departure related to the issuer's omission of certain disclosures required by FASB ASC Topic 820 Fair Value Measurement related to these warrants. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |