- Inspection year
- 2022
- Report date
- 28-Sep-2023
- PCAOB release
- 104-2023-178
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 4
- 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 A9 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not identify that one of the valuation reports prepared by the company's specialist was used for a different purpose than its stated intention and evaluate its use for that purpose. (AS 1105.A9) Financial statement audit only | AS 1105.A9 | Significant risk |
| 2 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform substantive procedures to determine whether the issuer identified and recorded all aspects of the transactions. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 3 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform substantive procedures to test certain estimates related to these transactions beyond testing the mathematical accuracy of the issuer's documentation. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |
| 4 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 5 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to evaluate the relevance and reliability of certain data used by the company's specialist. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 6 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm used an auditor-employed specialist to evaluate certain other significant assumptions used by the company's specialist. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist did not (1) perform any substantive procedures to evaluate the reasonableness of significant assumptions developed by the company's specialist and significant assumptions developed by the issuer (2) evaluate whether external data that the company's specialist used to develop certain significant assumptions were relevant and reliable and (3) evaluate the relevance and reliability of data it used in its procedures. (AS 1105.04 .06 .A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16) Financial statement audit only | AS 1105.4; AS 1105.6; AS 1105.A8a; AS 1105.A8b; AS 1201.C6; AS 1201.C7; AS 2501.16 | Significant risk |
| 7 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not perform any substantive procedures to test the fair value of certain other accounts and whether they were appropriately recorded in accordance with GAAP. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 8 | Significant Transactions | During the year the issuer entered into several significant transactions and engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not identify and evaluate a GAAP departure related to the issuer's omission of certain required disclosures. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |
| 9 | 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 |