- Inspection year
- 2022
- Report date
- 24-Aug-2023
- PCAOB release
- 104-2023-147a
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 17
- Part I.B deficiencies
- 14
- Report
- View PDF ↗
Deficiencies (17)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | Prior to the report release date the firm did not complete all necessary auditing procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm completed the performance and review of a significant number of auditing procedures after the report release date. (AS 1105.04; AS 1215.15) Financial statement audit only | AS 1105.4; AS 1215.15 | |
| 2 | Significant Transactions | The issuer engaged in a significant transaction. The firm did not perform any procedures to evaluate whether the transaction was accounted for in conformity with GAAP. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Revenue | The firm did not perform any procedures to evaluate whether certain transactions were appropriately presented as revenue 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 | |
| 4 | Significant Accounts | To test certain significant accounts the firm's substantive procedures included confirmation of the balances. The issuer sent the confirmation request on behalf of the firm and received the response directly from the recipient of the request. The firm did not maintain control of the confirmation request and response through direct communication with the intended recipient of the confirmation request. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 5 | Significant Accounts | To test certain significant accounts the firm's substantive procedures included confirmation of the balances. The issuer sent the confirmation request on behalf of the firm and received the response directly from the recipient of the request. For one of these significant accounts the firm did not perform substantive procedures beyond comparing the amount to the confirmation to test the valuation of the account. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 6 | Significant Accounts | The firm did not identify and evaluate a departure from GAAP related to the issuer's presentation of a significant account. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 7 | Journal Entries | The firm did not select journal entries and other adjustments for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | Prior to the report release date the firm did not complete all necessary auditing procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm completed the performance and review of a significant number of auditing procedures after the report release date. (AS 1105.04; AS 1215.15) Financial statement audit only | AS 1105.4; AS 1215.15 | |
| 2 | Significant Transactions | The issuer engaged in a significant transaction. The firm did not perform any procedures to evaluate whether the transaction was accounted for in conformity with GAAP. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Long-Lived Assets | The firm did not perform any procedures to test the appropriateness of the capitalization of certain costs to long-lived assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Journal Entries | The firm did not select journal entries and other adjustments for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer C6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | Prior to the report release date the firm did not complete all necessary auditing procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm completed the performance and review of a significant number of auditing procedures after the report release date. (AS 1105.04; AS 1215.15) Financial statement audit only | AS 1105.4; AS 1215.15 | |
| 2 | Journal Entries | For one of the issuer's subsidiaries the firm did not perform any procedures to identify and select journal entries and other adjustments for testing without having an appropriate basis for excluding that subsidiary. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 3 | Journal Entries | For another of the issuer's subsidiaries the firm identified journal entries that met certain criteria for testing. The firm did not examine the underlying support for the journal entries and instead limited its procedures to inquiry of management. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 4 | Inventory | The firm's substantive procedures at year end to test certain inventory included performing physical inventory count procedures using a report obtained from the issuer. The firm did not perform any procedures to test the completeness of the report. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 5 | Inventory | The firm's substantive procedures at year end to test certain inventory included performing physical inventory count procedures using a report obtained from the issuer. The firm did not perform procedures beyond inquiry and observation of the physical condition of inventory to test the price of this inventory and the related reserve. (AS 2301.08; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2501.7 | |
| 6 | Inventory | The issuer wrote off certain other inventory at year end. The firm did not perform any procedures to evaluate this write-off. (AS 2301.08) Financial statement audit only | AS 2301.8 |