- Inspection year
- 2022
- Report date
- 07-Jun-2023
- PCAOB release
- 104-2023-095
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- 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 | Inventory | To test the existence of inventory at a certain location the firm performed test counts on a sample of items. The firm was unable to count certain items. For certain other items the firm identified differences. The firm did not evaluate whether the inability to count certain items represented a misstatement and if so the potential effect on the evaluation of its sample. Further the firm did not (1) evaluate the nature and cause of the differences identified in its sample; (2) project the differences to the remaining inventory population; and (3) evaluate whether the projected differences were material to the financial statements. (AS 2315.25 .26 and .27) Financial statement audit only | AS 2315.25; AS 2315.26; AS 2315.27 | |
| 2 | Inventory | To test the existence of inventory at another location the firm performed a virtual observation of inventory but did not perform any test counts. (AS 2510.09) Financial statement audit only | AS 2510.9 | |
| 3 | Inventory | To test the existence of inventory at another location the firm did not perform substantive procedures beyond inquiry of management to evaluate whether an inventory reserve was warranted. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Certain Receivable | The issuer reported a certain receivable that was due from a counterparty. The firm did not perform substantive procedures to evaluate whether the issuer had a reasonable basis for concluding that the receivable was fully collectible beyond inspecting email communications between the issuer and the counterparty and inquiring with the counterparty. (AS 2501.16) Financial statement audit only | AS 2501.16 |