- Inspection year
- 2022
- Report date
- 07-Jun-2023
- PCAOB release
- 104-2023-093a
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (6)
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 | Revenue | The firm did not perform a substantive test of details over revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm's substantive analytical procedures over revenue were insufficient because: · The firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships (AS 2305.13 and .14) Financial statement audit only | AS 2305.13; AS 2305.14 | |
| 3 | Revenue | The firm's substantive analytical procedures over revenue were insufficient because: · The firm used certain system-generated sales data in its substantive analytical procedures but did not perform any procedures to test or test any controls over the accuracy and completeness of the data. (AS 2305.16) Financial statement audit only | AS 2305.16 | |
| 4 | Debt | For a certain loan payable the firm did not perform sufficient procedures to test the existence valuation rights and obligations classification and related disclosures as the firm's procedures were limited to (1) preparing a roll forward noting no change in the balance (2) agreeing the loan balance at the beginning of the year to prior year financial statements audited by the predecessor auditor and (3) agreeing the ending balance to the trial balance. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform procedures to evaluate the relevance and reliability of certain external data the issuer used to record revenue and that the firm used in its testing of revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Inventory | The firm did not perform sufficient procedures to test the existence of certain inventory located at external warehouses. Although the firm sent confirmations to the outside custodians no responses were received. The firm's alternative procedures were not sufficient because the firm limited its procedures to agreeing the total quantity of the inventory located at the warehouses to reports provided by the owner of the warehouses to the issuer. (AS 2510.14) Financial statement audit only | AS 2510.14 |