- Inspection year
- 2023
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-174
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing the fair value of a significant asset was to test the issuer's process. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 2 | Significant Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing the fair value of a significant asset was to test the issuer's process. The following deficiency was identified: · The firm did not perform substantive procedures beyond inquiry to evaluate whether the issuer had a reasonable basis for another significant assumption developed by the issuer. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 3 | Significant Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing the fair value of a significant asset was to test the issuer's process. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate another significant assumption the issuer used. The firm did not sufficiently evaluate the reasonableness of that significant assumption because it did not identify that the auditor-employed specialist (1) limited its procedures to evaluate the reasonableness of the significant assumption to inquiry and comparison to external data and (2) did not evaluate the relevance and reliability of the external data. (AS 1105.04 and .06; AS 1201.C6 and .C7; AS 2501.16) Financial statement audit only | AS 1105.4; AS 1105.6; AS 1201.C6; AS 1201.C7; AS 2501.16 | Significant risk |
| 4 | Operating Expenses | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer used service organizations to process payroll expense and recorded this expense based on information provided by the service organizations. The firm did not perform procedures to test certain of these payroll expenses beyond comparing the amounts to the service organization reports and/or issuer-prepared documents. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Operating Expenses | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform any substantive procedures to test certain other operating expenses. (AS 2301.08) Financial statement audit only | AS 2301.8 |