- Inspection year
- 2022
- Report date
- 26-Jun-2023
- PCAOB release
- 104-2023-106
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 1
- 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 A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to initiate process and record loan-related transactions. The firm did not perform any procedures to test the accuracy and completeness of the data that it used to test controls related to user access and change management over this IT system. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 2 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to initiate process and record loan-related transactions. The firm selected for testing a control over a review of user access rights for this IT system. 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) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 3 | Allowance for Credit/Loan Losses | The firm selected for testing a control over the review of the significant judgments and estimates used in the ALL. 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) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 4 | Allowance for Credit/Loan Losses | The firm selected for testing a control over the review of the significant judgments and estimates used in the ALL. Due to the deficiencies in the firm's testing of IT general controls the firm did not sufficiently test controls over the accuracy and completeness of data and reports used in the operation of this control. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 5 | Allowance for Credit/Loan Losses | The firm selected for testing a control that included the issuer's review of the assumptions used to determine the qualitative factors used to estimate the ALL for loans collectively evaluated for impairment. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the basis points applied to each of the qualitative factors. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 6 | Allowance for Credit/Loan Losses | For loans collectively evaluated for impairment the firm's approach for substantively testing the ALL was to test the issuer's process. The firm did not evaluate whether the issuer had a reasonable basis for the significant assumptions related to the basis points used for the qualitative factors. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 |