- Inspection year
- 2022
- Report date
- 11-Dec-2023
- PCAOB release
- 104-2024-018
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 10
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (10)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized several types of revenue. The following deficiencies were identified: · For one type of revenue the firm selected a sample of transactions for testing. The firm did not perform procedures to test whether revenue was appropriately recognized for the sampled transactions beyond obtaining issuer-produced sales orders. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The issuer recognized several types of revenue. The following deficiencies were identified: · For a second type of revenue the firm did not evaluate the appropriateness of the issuer's identification of performance obligations. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The issuer recognized several types of revenue. The following deficiencies were identified: · For the second type of revenue the firm selected a sample of transactions for testing. The firm did not perform procedures to test whether revenue was appropriately recognized for the sampled transactions beyond obtaining cash receipts. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Revenue | The issuer recognized several types of revenue. The following deficiencies were identified: · For a third type of revenue the firm did not perform procedures to evaluate whether the issuer had satisfied its performance obligations beyond obtaining cash receipts for certain transactions. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 5 | Financial Statement Presentation and Disclosures | The firm did not identify and evaluate a departure from GAAP related to the issuer's presentation and disclosure of a significant transaction. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 6 | Related Party Transactions | During the year the issuer entered into several transactions with a related party. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the presentation and disclosure of one of these transactions because it did not evaluate audit evidence that indicated that the nature of the transaction was contradictory to the issuer's presentation and disclosure in its financial statements. (AS 2410.17; AS 2810.03) Financial statement audit only | AS 2410.17; AS 2810.3 | |
| 7 | Related Party Transactions | During the year the issuer entered into several transactions with a related party. The following deficiencies were identified: · The firm did not evaluate whether the business purpose (or lack thereof) of certain of these transactions indicated that they may have been entered into to engage in fraudulent financial reporting or to conceal misappropriation of assets given certain facts regarding the transactions. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 8 | Related Party Transactions | During the year the issuer entered into several transactions with a related party. The following deficiencies were identified: · The firm did not take any action in response to information regarding certain transactions that indicated possible illegal acts. (AS 2405.07 and .10) Financial statement audit only | AS 2405.7; AS 2405.10 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform substantive procedures to test an estimate related to revenue beyond recalculating the amount. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |
| 2 | Related Party Receivable | The issuer reported a loan receivable from a related party. The firm did not perform procedures to evaluate the financial capability of this related party. (AS 2410.12) Financial statement audit only | AS 2410.12 |