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PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
Denmark · PricewaterhouseCoopers International Limited · Triennially Inspected
- Inspection year
- 2022
- Report date
- 14-Sep-2023
- PCAOB release
- 104-2023-164
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- 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 | Inventory | The principal auditor instructed the firm to identify likely sources of potential misstatement ('LSPMs') and evaluate the design and operating effectiveness of specific controls related to the inventory process ('inventory controls') to ensure that the controls were designed and implemented to address the LSPMs identified by the firm and the risk of misstatement identified by the principal auditor for each relevant assertion. The following deficiency was identified: · The firm did not perform procedures to determine the LSPMs related to the inventory process and therefore did not have a basis to evaluate whether the inventory controls tested sufficiently addressed the assessed risk of misstatement for each relevant assertion and were appropriately designed and implemented to address the likely sources of potential misstatement that may have existed. (AS 2201.30 .39 .42 and .44) Both financial statement and ICFR audits | AS 2201.30; AS 2201.39; AS 2201.42; AS 2201.44 | |
| 2 | Inventory | The principal auditor instructed the firm to identify likely sources of potential misstatement ('LSPMs') and evaluate the design and operating effectiveness of specific controls related to the inventory process ('inventory controls') to ensure that the controls were designed and implemented to address the LSPMs identified by the firm and the risk of misstatement identified by the principal auditor for each relevant assertion. The following deficiency was identified: · For certain of the inventory controls tested the firm did not perform procedures to test or test any controls over the accuracy and completeness of a system-generated report and other data provided by management which were used by the firm to test the controls. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 3 | Inventory | The principal auditor also instructed the firm to substantively test inventory. To test the existence of inventory the firm confirmed certain inventory quantities held in a public warehouse and observed the issuer's physical inventory counts at other locations including verifying the weight of select inventory items using the issuer's scales and obtaining certificates of scale calibration from management. The following deficiency was identified: · The firm received an electronic response to a positive confirmation request sent to the warehouse that held the inventory. The firm did not perform procedures to address the risks associated with the electronic response such as verifying the source and contents of the response. (AS 2310.29) Both financial statement and ICFR audits | AS 2310.29 | |
| 4 | Inventory | The principal auditor also instructed the firm to substantively test inventory. To test the existence of inventory the firm confirmed certain inventory quantities held in a public warehouse and observed the issuer's physical inventory counts at other locations including verifying the weight of select inventory items using the issuer's scales and obtaining certificates of scale calibration from management. The following deficiency was identified: · The firm's observation procedures at the other locations were not suitable because the firm did not perform procedures to match the scale calibration certificates obtained from management to the specific scales used by the firm to weigh the selected items of inventory. (AS 2510.09) Both financial statement and ICFR audits | AS 2510.9 |