- Inspection year
- 2021
- Report date
- 26-Oct-2023
- PCAOB release
- 104-2023-202
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 8
- 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 A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The firm's approach for substantively testing the issuer's impairment analysis for certain long-lived assets was to develop an independent expectation. The following deficiencies were identified: - The firm did not take into account (1) the requirements of certain elements of the applicable financial framework and (2) its understanding of the issuer's process so that its independent expectation considered the factors relevant to the estimate. (AS 2501.21) Financial statement audit only | AS 2501.21 | |
| 2 | Long-Lived Assets | The firm's approach for substantively testing the issuer's impairment analysis for certain long-lived assets was to develop an independent expectation. The following deficiencies were identified: - The firm did not perform any procedures beyond inquiring of management to demonstrate that it had a reasonable basis for certain of its assumptions used in its independent expectation. (AS 2501.22) Financial statement audit only | AS 2501.22 | |
| 3 | Long-Lived Assets | The firm did not identify and evaluate the significance to the financial statements of a departure from the issuer's applicable financial reporting framework related to the issuer's omission of certain required disclosures. (AS 2810.30 and 2810.31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 4 | Long-Lived Assets | During the year the issuer reclassified certain long-lived assets due to a change in the intended use of these assets. The firm did not evaluate whether the reclassification met all of the requirements in accordance with the issuer's applicable financial reporting framework. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 5 | Accounts Receivable | The firm did not evaluate whether the issuer measured its allowance for doubtful accounts receivable ('allowance') using a probability-weighted amount that was determined by evaluating a range of possible outcomes as required by the issuer's applicable financial reporting framework. (AS 2810.30) Financial statement audit only | AS 2810.30 | |
| 6 | Accounts Receivable | With respect to Accounts Receivable the firm's approach for substantively testing the allowance was to review and test the issuer's process. The firm did not perform any substantive procedures to evaluate the reasonableness of the significant assumptions that the issuer used to develop the allowance. (AS 2501.16) Financial statement audit only | AS 2501.16 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Goodwill | The firm's approach for substantively testing the issuer's goodwill impairment analyses for certain reporting units was to develop independent expectations. The firm did not perform any procedures to demonstrate that it had a reasonable basis for certain assumptions that it used in its independent expectations. (AS 2501.22) Financial statement audit only | AS 2501.22 | |
| 2 | Goodwill | The firm's approach for substantively testing the issuer's goodwill impairment analyses for certain reporting units was to develop independent expectations. The firm did not identify and evaluate the significance to the financial statements of a departure from GAAP related to the issuer's omission of disclosures with respect to goodwill as required by FASB ASC Topic 350 Intangibles — Goodwill and Other. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 3 | Investment Securities | The firm did not perform sufficient procedures to test the issuer's investment securities at year end because its procedures to test these securities were limited to (1) inspecting certain bank statements at interim dates for transfer activity from the issuer's cash account to its investment account and (2) reading the investment contract. (AS 2301.08) Financial statement audit only | AS 2301.8 |