- Inspection year
- 2022
- Report date
- 01-Aug-2023
- PCAOB release
- 104-2023-132
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 3
- 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 | Revenue | The following deficiencies were identified with respect to the firm's testing of revenue: · The firm did not perform sufficient procedures to evaluate whether the issuer appropriately recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers because the firm did not evaluate whether the transactions were an exchange for a good or service that was an output of the issuer's ordinary activities. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The following deficiencies were identified with respect to the firm's testing of revenue: · With respect to revenue disclosures the firm did not evaluate whether the disclosures about the issuer's agreements under which they recorded revenue were an accurate description of the nature of the contractual arrangements entered into by the issuer and the counterparties to the contracts. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Intangible Assets | With respect to certain finite-lived intangible assets the firm did not perform sufficient procedures to evaluate whether the assets were appropriately accounted for in conformity with FASB ASC Topic 350 Intangibles—Goodwill and Other. Specifically the firm did not evaluate the appropriateness of (1) the classification of the assets as finite-lived intangible assets and (2) the useful lives assigned to the assets when no contractual term was present including the amortization expense recorded thereafter. (AS 2301.08 and .11; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2810.3 | Significant risk |
| 4 | Certain Assets | The issuer reported certain assets that were held by an outside party. The firm did not perform sufficient procedures to test the issuer's rights to these assets because it limited its procedures to confirmation review of the issuer's transaction detail and observation of the issuer logging in to an account with the outside party. (AS 2301.08) Financial statement audit only | AS 2301.8 |