- Inspection year
- 2023
- Report date
- 26-Oct-2023
- PCAOB release
- 104-2023-203
- 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
- 1
- 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 A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The issuer had multiple subsidiaries. During the year the issuer entered into a certain type of transaction through one of its subsidiaries. The following deficiency was identified: · The firm did not evaluate whether the issuer's accounting for the transactions was appropriate. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Revenue and Related Accounts | The issuer had multiple subsidiaries. During the year the issuer entered into a certain type of transaction through one of its subsidiaries. The following deficiency was identified: · The firm did not perform procedures to evaluate the relevance and reliability of certain information it used as audit evidence including taking into account the issuer's circumstances and other relevant conditions. (AS 1105.04 and .06; AS 2501.29) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2501.29 | |
| 3 | Revenue and Related Accounts | The issuer had multiple subsidiaries. During the year the issuer entered into a certain type of transaction through one of its subsidiaries. The following deficiency was identified: · The firm did not evaluate whether the nature of these transactions required the firm to take any action in response to certain information regarding this transaction that indicated a possible illegal act. (AS 2405.10) Financial statement audit only | AS 2405.10 | |
| 4 | Revenue and Related Accounts | The issuer had multiple subsidiaries. During the year the issuer entered into a certain type of transaction through one of its subsidiaries. The following deficiency was identified: · The firm did not evaluate whether the business purpose (or lack thereof) of these transactions indicated that the transactions may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 5 | Investments | The firm did not perform sufficient procedures to evaluate the issuer's qualitative assessment of potential impairment indicators to test the valuation of an investment because the firm did not address certain inconsistencies in the issuer's assessment. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Investments | In addition the firm did not evaluate whether the business purpose (or lack thereof) of the investment transaction indicated that it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 7 | Journal Entries | For certain subsidiaries the firm did not perform any procedures to identify and select journal entries and other adjustments for testing for evidence of possible material misstatement due to fraud without having an appropriate basis for excluding those subsidiaries. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiency below. The firm did not perform procedures to evaluate whether the recognition of revenue and related disclosures regarding the number of performance obligations in the financial statements were 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's internal inspection program inspected this audit and reviewed this area but did not identify the deficiency below. The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 606. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |