- Inspection year
- 2022
- Report date
- 07-Jun-2023
- PCAOB release
- 104-2023-098
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 1
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (1)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Stock Compensation | The issuer recorded stock compensation expense on the vesting date rather than recognizing it ratably over the vesting period and incorrectly calculated forfeiture estimates for issued stock options by applying estimated forfeiture adjustments to vested stock options. The issuer's accounting for stock compensation was not in conformity with FASB ASC Topic 718 Compensation — Stock Compensation but the firm did not identify and evaluate this departure from GAAP. (AS 2810.30) Unrelated to our review the issuer reevaluated its accounting for stock compensation and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2810.30 | Significant risk |