- Inspection year
- 2023
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-168
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 7
- 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 A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a business and engaged a valuation specialist to determine the fair value of the acquired intangible assets. The firm's approach for substantively testing the fair value of acquired intangible assets was to test the issuer's process and the firm used an auditor-engaged specialist to evaluate the significant assumptions the company's specialist used. The firm did not sufficiently evaluate the reasonableness of the significant assumptions because it did not identify that the auditor-engaged specialist did not (1) perform procedures beyond inquiry of the company's specialist to evaluate the reasonableness of the significant assumptions that were developed by the issuer and the company's specialist and (2) evaluate the relevance and reliability of the external data that the company's specialist used to develop certain assumptions. (AS 1105.A8a and .A8b; AS 1210.09 and .12; AS 2501.16) Financial statement audit only | AS 1105.A8a; AS 1105.A8b; AS 1210.9; AS 1210.12; AS 2501.16 | Significant risk |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures related to revenue required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Revenue | The firm did not evaluate the accuracy of the issuer's disclosure regarding the timing of when certain revenue was recognized including consideration of contrary evidence included in the firm's audit work papers. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 | |
| 3 | Revenue | The firm did not evaluate whether a promised good related to this revenue was a separate performance obligation. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 |