- Inspection year
- 2023
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-175
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (7)
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 | Revenue | The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not perform any procedures to evaluate the relevance and reliability of the external information it used to test revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 3 | Inventory | The issuer held certain inventory at external warehouses. The firm did not perform sufficient procedures to test the existence of this inventory because it limited its procedures to confirming the quantities of this inventory with the external warehouses. (AS 2510.14) Financial statement audit only | AS 2510.14 | |
| 4 | Inventory | The issuer reported a reserve for excess and obsolete inventory. The firm did not perform procedures to test this reserve beyond performing recalculations of certain amounts. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 5 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Common Stock | The firm selected for testing a control that consisted of the issuer's review of the fair market value of common stock issued for (1) private placement shares and (2) commitment shares. The firm did not test the operating effectiveness of this control for commitment shares. (AS 2201.44) ICFR audit only | AS 2201.44 | |
| 2 | Common Stock | The firm selected for testing a control that consisted of the issuer's review of equity schedules. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 |