- Inspection year
- 2022
- Report date
- 16-Oct-2023
- PCAOB release
- 104-2023-190
- Audits reviewed
- 4
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 9
- 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 A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | The engagement partner did not sufficiently review the work of engagement team members to evaluate whether the work was performed and documented the objectives of the procedures were achieved and the results of the work supported the conclusions reached because the engagement partner did not clear all review notes. Further the engagement partner reviewed audit programs in which certain steps (1) were signed off as having been completed when the related procedures were not documented in the work papers or (2) were inappropriately identified as being not applicable and thus not performed. (AS 1201.05) Financial statement audit only | AS 1201.5 | |
| 2 | Financial Reporting Process | The firm did not reconcile the financial statements with the underlying accounting records and examine material adjustments made during the course of preparing the financial statements. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 3 | Revenue and Related Accounts | The firm did not evaluate the appropriateness of the issuer's presentation of certain accounts related to revenue. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Revenue and Related Accounts | The firm did not identify and evaluate a GAAP departure related to the issuer's omission of certain disclosures related to revenue as required 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 | Significant risk |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Preferred Stock | The firm did not evaluate whether the issuer's classification of certain preferred stock as permanent equity was in conformity with FASB ASC Topic 480 Distinguishing Liabilities from Equity and FASB ASC Topic 815 Derivatives and Hedging given the issuer did not have enough authorized and unissued shares available to satisfy its obligations to issue shares of common stock upon exercise and the conversion of financial instruments. (AS 2301.08 Financial statement audit only | AS 2301.8 |