- Inspection year
- 2022
- Report date
- 26-Jun-2023
- PCAOB release
- 104-2023-103
- 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 | Inventory | The firm selected for testing controls over existence and valuation of inventory that consisted of the issuer's reviews of inventory records average cost and amortization. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 2 | Inventory | The issuer used two information technology (IT) systems to support the inventory process. Both IT systems were configured based on user roles and profiles which determined user access levels. The firm selected for testing access controls over the IT systems that consisted of the issuer's reviews of user access lists with roles and profiles. The firm did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether the granted access continued to be appropriate. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 3 | Inventory | The issuer used two information technology (IT) systems to support the inventory process. Both IT systems were configured based on user roles and profiles which determined user access levels. The firm selected for testing controls over the program changes for these IT systems. The firm did not test or test any controls over the accuracy and completeness of the population of IT systems program changes from which it made its selections for testing. (AS 1105.10) ICFR audit only | AS 1105.10 | |
| 4 | Inventory | The firm selected for testing various IT-dependent manual controls that used data and reports generated by these IT systems. As a result of the deficiencies in the firm's testing of information technology general controls discussed above the firm's testing of these IT-dependent manual controls was not sufficient. (AS 2201.46) ICFR audit only | AS 2201.46 |