- Inspection year
- 2023
- Report date
- 16-Nov-2023
- PCAOB release
- 104-2024-011
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (4)
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 | Long-Lived Assets | The issuer engaged external engineering consultants (“company's specialists”) to review and evaluate the mineral reserves and resources estimates prepared by management which were then used in the development of a life-of-mine (LOM) plan for each site. The company's specialists evaluated the estimated mineral reserves and resources using various methods which included the use of financial and non-financial information data and assumptions that were provided by or obtained from the issuer other specialists and/or external sources. The firm's approach for substantively testing the valuation of long-lived assets was to test the issuer's process. With respect to the evaluation of the LOM plans and reserves estimates by the company's specialists which were then used in the issuer's depreciation expense calculations the following deficiencies were identified: · The firm did not identify and test any controls over the (1) accuracy and completeness of the non-financial data prepared by the issuer (2) relevance and reliability of the non-financial information obtained by the company's specialists (3) reasonableness of the non-financial assumptions and (4) appropriateness of the methods used by the company's specialists. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Long-Lived Assets | The issuer engaged external engineering consultants (“company's specialists”) to review and evaluate the mineral reserves and resources estimates prepared by management which were then used in the development of a life-of-mine (LOM) plan for each site. The company's specialists evaluated the estimated mineral reserves and resources using various methods which included the use of financial and non-financial information data and assumptions that were provided by or obtained from the issuer other specialists and/or external sources. The firm's approach for substantively testing the valuation of long-lived assets was to test the issuer's process. With respect to the evaluation of the LOM plans and reserves estimates by the company's specialists which were then used in the issuer's depreciation expense calculations the following deficiencies were identified: · The firm did not perform any procedures to test the accuracy and completeness of the non-financial data prepared by the Issuer and evaluate the relevance and reliability of the non-financial information obtained and used by the company's specialists. (AS 1105.A8a) Both financial statement and ICFR audits | AS 1105.A8a | |
| 3 | Long-Lived Assets | The issuer engaged external engineering consultants (“company's specialists”) to review and evaluate the mineral reserves and resources estimates prepared by management which were then used in the development of a life-of-mine (LOM) plan for each site. The company's specialists evaluated the estimated mineral reserves and resources using various methods which included the use of financial and non-financial information data and assumptions that were provided by or obtained from the issuer other specialists and/or external sources. The firm's approach for substantively testing the valuation of long-lived assets was to test the issuer's process. With respect to the evaluation of the LOM plans and reserves estimates by the company's specialists which were then used in the issuer's depreciation expense calculations the following deficiencies were identified: · The firm did not perform any procedures to evaluate the reasonableness of significant assumptions used by the company's specialists. (AS 2501.16; AS 1105.A8b) Both financial statement and ICFR audits | AS 1105.A8b; AS 2501.16 | |
| 4 | Long-Lived Assets | The issuer engaged external engineering consultants (“company's specialists”) to review and evaluate the mineral reserves and resources estimates prepared by management which were then used in the development of a life-of-mine (LOM) plan for each site. The company's specialists evaluated the estimated mineral reserves and resources using various methods which included the use of financial and non-financial information data and assumptions that were provided by or obtained from the issuer other specialists and/or external sources. The firm's approach for substantively testing the valuation of long-lived assets was to test the issuer's process. With respect to the evaluation of the LOM plans and reserves estimates by the company's specialists which were then used in the issuer's depreciation expense calculations the following deficiencies were identified: · The firm did not perform any procedures to evaluate whether the methods used by the company's specialists were appropriate under the circumstances. (AS 1105.A8c) Both financial statement and ICFR audits | AS 1105.A8c |