- Inspection year
- 2022
- Report date
- 11-Dec-2023
- PCAOB release
- 104-2024-021
- Audits reviewed
- 7
- Audits w/ Part I.A deficiencies
- 5
- Part I.A deficiency rate
- 71%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (11)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any procedures to evaluate the reliability of the information it obtained from external sources that it used to test certain revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Revenue | The firm did not perform any procedures to evaluate the terms and conditions of an agreement for certain revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not perform any procedures to test the appropriateness of the amount of revenue recognized. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Long-Lived Assets | The firm did not perform sufficient procedures to test the estimated useful lives assigned to the issuer's property and equipment because it limited its procedures to comparing the useful lives to information from an external source. Further the firm did not evaluate the relevance and reliability of the information. (AS 1105.04 and .06; AS 2501.07) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2501.7 | |
| 5 | Long-Lived Assets | The firm did not perform procedures to evaluate the issuer's conclusion that there were no indicators of potential impairment even though the firm was aware that such conditions existed. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | The firm did not perform sufficient procedures to evaluate whether the issuer recognized an acquisition in accordance with FASB ASC Topic 805 Business Combinations because it did not evaluate whether the assets acquired and liabilities assumed met the definition of a business. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Business Combinations | The firm did not perform sufficient procedures to test the fair value of certain liabilities assumed because it did not perform any procedures to test or test any controls over the accuracy and completeness of a report used in its testing. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 3 | Business Combinations | The firm did not perform any substantive procedures over the amount of certain liabilities assumed. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Share-Based Compensation | The firm did not identify and evaluate a departure from GAAP related to the incorrect calculation of stock-based compensation expense. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |
Issuer D1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected a sample of revenue transactions for testing. The firm did not perform any substantive procedures to test estimates used to recognize revenue and related accounts for certain of these transactions. (AS 2501.07) Financial statement audit only | AS 2501.7 |
Issuer E1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm identified fraud criteria for journal entries. The firm did not apply the criteria to the entire population of journal entries to identify all journal entries that met the criteria. Further the firm limited its testing of journal entries to a haphazard selection. (AS 2401.61) Financial statement audit only | AS 2401.61 |