- Inspection year
- 2022
- Report date
- 26-Jun-2023
- PCAOB release
- 104-2023-113
- Audits reviewed
- 4
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (11)
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 issuer recognized certain revenue based on an arrangement with an external party. The firm did not perform any procedures to evaluate whether the issuer's arrangement represented a contract with an identifiable customer in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The issuer recognized certain revenue based on an arrangement with an external party. The firm did not perform any procedures to evaluate the reliability of data the issuer used to record this revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 3 | Revenue | The firm did not perform any procedures to test certain data used to recognize certain other revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Asset Acquisition | During the year the issuer completed an asset acquisition. The firm did not perform procedures beyond reading issuer-prepared documentation and inquiries of management to evaluate the reasonableness of certain significant assumptions the issuer used to determine the fair value of contingent consideration. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
Issuer B7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer used multiple information-technology (IT) systems to record transactions related to revenue. In its testing of controls over revenue the firm tested an IT-dependent manual control that used data generated by these IT systems. As a result of the deficiencies in the firm's testing of the controls over these IT systems the firm's testing of the IT-dependent manual control was not sufficient. (AS 2201.46) ICFR audit only | AS 2201.46 | |
| 2 | Revenue | The issuer used multiple information-technology (IT) systems to record transactions related to revenue. In its testing of controls over revenue the firm tested an IT-dependent manual control that used data generated by these IT systems. With respect to one of these IT systems: · The firm did not perform procedures beyond inquiry and reading the issuer's policies to test certain logical user access controls. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 3 | Revenue | The issuer used multiple information-technology (IT) systems to record transactions related to revenue. In its testing of controls over revenue the firm tested an IT-dependent manual control that used data generated by these IT systems. With respect to one of these IT systems: · The firm did not identify and test any controls related to IT operations. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 4 | Revenue | The issuer used multiple information-technology (IT) systems to record transactions related to revenue. In its testing of controls over revenue the firm tested an IT-dependent manual control that used data generated by these IT systems. With respect to one of these IT systems: · The firm did not identify and test controls over program change management except for one control over the final approval of program changes. For this control 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 2201.39 .42 and .44) ICFR audit only | AS 2201.39; AS 2201.42; AS 2201.44 | |
| 5 | Revenue | The issuer used multiple information-technology (IT) systems to record transactions related to revenue. In its testing of controls over revenue the firm tested an IT-dependent manual control that used data generated by these IT systems. With respect to one of these IT systems: · The firm selected for testing a control over a review of an annual IT general controls assessment performed by the issuer's internal auditor. 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 | |
| 6 | Revenue | With respect to a second IT system the firm did not identify and test any controls over the accuracy and completeness of data received from external sources that was processed by this IT system. (AS 2201.39) ICFR audit only | AS 2201.39 | |
| 7 | Revenue | A third IT system was hosted by a service organization. The firm did not perform any procedures to test the design and operating effectiveness of complementary user controls the issuer implemented to address a stated control objective in the service auditor's report. (AS 2201.42 .44 and .B22) ICFR audit only | AS 2201.42; AS 2201.44; AS 2201.B22 |