- Inspection year
- 2022
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-172
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 8
- Report
- View PDF ↗
Deficiencies (9)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures related to revenue. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Revenue | The firm did not perform any substantive procedures to evaluate the appropriateness of the issuer's recognition of revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not perform procedures to evaluate the relevance and/or reliability of certain information it used as audit evidence in testing revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 4 | Revenue | The firm did not evaluate the business purpose (or lack thereof) of the revenue transactions including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the transactions. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 5 | Significant Accounts | The firm did not perform substantive procedures beyond comparing the account balance to the amount reported in the prior year to test the completeness and valuation of a significant account. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 6 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the risk of management override. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | The firm's approach for substantively testing an intangible asset for impairment was to develop an independent expectation of the fair value of the asset. The firm did not take into account the requirements of the applicable financial framework so that the firm's independent expectation considered the factors relevant to the estimate. (AS 2501.21) Financial statement audit only | AS 2501.21 | |
| 2 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the risk of management override. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the risk of management override. (AS 2401.58) Financial statement audit only | AS 2401.58 |