- Inspection year
- 2022
- Report date
- 26-Jun-2023
- PCAOB release
- 104-2023-114
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 4
- 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 | Revenue | To test certain revenue the firm selected a sample of items for testing. The following deficiencies were identified: · The sample size the firm used was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining the sample size including tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population. (AS 2315.16 .19 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 2 | Revenue | To test certain revenue the firm selected a sample of items for testing. The following deficiencies were identified: · The firm drew its sample from a source that was not necessarily representative of the revenue recorded during the year. (AS 2315.17) Financial statement audit only | AS 2315.17 | |
| 3 | Revenue | The firm did not perform procedures to test the accuracy of certain data it used to test an adjustment to revenue beyond agreeing the data to the issuer's internal systems. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Significant Accounts | The issuer engaged specialists to estimate certain portions of a significant account. The following deficiencies were identified: · The firm did not perform procedures to test the accuracy of certain issuer-produced data that the company's specialist used in developing certain individual estimates beyond testing the accuracy of the data in the aggregate. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 5 | Significant Accounts | The issuer engaged specialists to estimate certain portions of a significant account. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reasonableness of significant assumptions the company's specialist developed and used in developing one of the estimates. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 6 | Significant Accounts | The issuer engaged specialists to estimate certain portions of a significant account. The following deficiencies were identified: · For one of the estimates the firm did not perform any procedures to evaluate whether the methods used by the company's specialist were appropriate under the circumstances taking into account the requirements of the applicable financial reporting framework. (AS 1105.A8c) Financial statement audit only | AS 1105.A8c | Significant risk |