- Inspection year
- 2023
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-173
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 12
- Report
- View PDF ↗
Deficiencies (11)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Planning | The firm did not establish an overall audit strategy and develop an audit plan that provided a reasonable basis for its audit opinion on the issuer's financial statements. (AS 2101.08 and .10) Financial statement audit only | AS 2101.8; AS 2101.10 | |
| 2 | Audit Planning | The firm did not establish a materiality level for the financial statements as a whole and determine the related amount of tolerable misstatement. (AS 2105.06 and .08) Financial statement audit only | AS 2105.6; AS 2105.8 | |
| 3 | Audit Evidence | 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 did not review the work of engagement team members to evaluate whether the (1) work was performed and documented (2) objectives of the procedures were achieved and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05) Financial statement audit only | AS 1105.4; AS 1201.5 | |
| 4 | Audit Evidence | The firm's work papers did not contain sufficient information to support its opinion or to enable an experienced auditor having no previous connection with the engagement to understand the nature timing extent and results of the procedures performed evidence obtained and conclusions reached. (AS 1105.04; AS 1215.06) Financial statement audit only | AS 1105.4; AS 1215.6 | |
| 5 | Revenue and Related Accounts | The issuer disclosed that it recognized revenue from contracts with multiple customers in compliance with FASB ASC Topic 605 Revenue Recognition. The firm's substantive procedures to test revenue included testing certain transactions and customer contracts. The following deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer's application of FASB ASC Topic 605 which was superseded by FASB ASC Topic 606 Revenue from Contracts with Customers.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 | |
| 6 | Revenue and Related Accounts | The issuer disclosed that it recognized revenue from contracts with multiple customers in compliance with FASB ASC Topic 605 Revenue Recognition. The firm's substantive procedures to test revenue included testing certain transactions and customer contracts. The following deficiency was identified: · The firm did not perform substantive procedures to test selected transactions beyond obtaining the related invoice from the issuer. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 7 | Revenue and Related Accounts | The issuer disclosed that it recognized revenue from contracts with multiple customers in compliance with FASB ASC Topic 605 Revenue Recognition. The firm's substantive procedures to test revenue included testing certain transactions and customer contracts. The following deficiency was identified: · The firm did not perform any substantive procedures to test revenue cut-off. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 8 | Revenue and Related Accounts | The firm did not perform any procedures to test the issuer's conclusion not to record an allowance for doubtful accounts. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 9 | Related Party Transactions | The issuer disclosed that it had no related party transactions or balances. The following deficiency was identified: · The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties because the firm did not evaluate information gathered during the audit to determine whether certain entities were related parties. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 10 | Related Party Transactions | The issuer disclosed that it had no related party transactions or balances. The following deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of disclosures required by FASB ASC Topic 850 Related Party Disclosures. (AS 2410.17; 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | |
| 11 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |