Farber Hass Hurley LLP

United States · Triennially Inspected

Deficiencies (2)

Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.

#	Area	Deficiency	Standard	Flags
1	Income Taxes	The firm did not identify and test any controls over the determination and valuation of certain deferred tax assets. (AS 2201.39) Unrelated to our review the issuer reevaluated its accounting for income taxes and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. The issuer also reevaluated its controls over income taxes and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR and the firm revised its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion and reissued its report. Both financial statement and ICFR audits	AS 2201.39	Significant risk
2	Income Taxes	The firm did not identify and evaluate a departure from GAAP related to the issuer's reporting of certain deferred tax assets that should have been written off and recognized as income tax expense in accordance with FASB ASC Topic 740 Income Taxes. (AS 2810.30 and .31) Both financial statement and ICFR audits	AS 2810.30; AS 2810.31	Significant risk