- Inspection year
- 2022
- Report date
- 13-Jul-2023
- PCAOB release
- 104-2023-120
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 16
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (16)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A15 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Transactions | During the year the issuer entered into a transaction. The firm did not evaluate whether the business purpose (or lack thereof) of this transaction indicated that it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the transaction. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 2 | Certain Transactions | During the year the issuer entered into a transaction. The firm did not take any action in response to a fact regarding this transaction that indicated a possible illegal act. (AS 2405.10) Financial statement audit only | AS 2405.10 | |
| 3 | Certain Assets | During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · The firm did not evaluate whether the issuer's accounting for this asset was in conformity with GAAP. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Certain Assets | During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate the reasonableness of the significant assumptions developed by the company's specialist. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 5 | Certain Assets | During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · The firm did not perform any substantive procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 6 | Certain Assets | During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · The firm did not perform sufficient substantive procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer because the firm did not evaluate the reliability of certain external information it used. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 7 | Certain Assets | During the year the issuer recorded an asset. The issuer engaged an external specialist to determine the fair value of this asset. The following deficiencies were identified: · In evaluating the reasonableness of these significant assumptions the firm did not take into account the issuer's ability to carry out the actions necessary to meet the assumptions. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 | Significant risk |
| 8 | Certain Assets | During the year the issuer also recorded certain other assets at fair value. The firm did not perform any substantive procedures to evaluate the reasonableness of the issuer's assumption used to determine the fair value. Further the firm did not evaluate the consistency of this assumption with market information it obtained. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 9 | Revenue | The issuer recognized revenue from different sources. The following deficiencies were identified: · The firm did not evaluate whether certain arrangements in its contracts with customers represented performance obligations. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 10 | Revenue | The issuer recognized revenue from different sources. The following deficiencies were identified: · The firm did not evaluate the effect of certain sales terms and conditions on the transaction price. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 11 | Revenue | The issuer recognized revenue from different sources. The following deficiencies were identified: · For certain revenue the firm did not evaluate whether the existence of certain arrangements or terms and conditions affected when performance obligations were satisfied. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 12 | Revenue | The issuer recognized revenue from different sources. The following deficiencies were identified: · The firm did not perform procedures beyond completing a disclosure checklist to evaluate whether the disclosures in the financial statements met certain requirements of FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 13 | Revenue | The issuer recognized revenue from different sources. The following deficiencies were identified: · The firm used certain external information in its substantive procedures to test certain revenue but did not perform any procedures to evaluate the reliability of this information. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 14 | Cash | The firm did not perform procedures to address a fraud risk related to the misappropriation of cash beyond (1) obtaining evidence that an individual who had incompatible duties performed a cash count at a date that was not at or near the end of the year in which a difference was identified and (2) obtaining cash logs which included certain transactions that did not appear to have a clear business purpose or evidence of proper authorization. (AS 2301.13; AS 2401.56) Financial statement audit only | AS 2301.13; AS 2401.54 | |
| 15 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing for evidence of possible material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Debt | The firm did not identify and evaluate a departure from GAAP related to the issuer's misclassification of certain debt as non-current which was not in conformity with FASB ASC Topic 210 Balance Sheet. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |