- Inspection year
- 2023
- Report date
- 11-Dec-2023
- PCAOB release
- 104-2024-022
- Audits reviewed
- 4
- Audits w/ Part I.A deficiencies
- 4
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 20
- Part I.B deficiencies
- 17
- Report
- View PDF ↗
Deficiencies (20)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | A Significant Account | The firm did not evaluate whether the issuer complied with certain aspects of GAAP in recording the balances within the significant account. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | A Significant Account | The firm did not perform any procedures to evaluate the relevance and reliability of external information it used to test certain balances in the significant account. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 3 | Certain Assets | The issuer reported certain assets and performed an evaluation of whether the assets were impaired. The following deficiencies were identified: · The firm did not perform any procedures to establish whether the issuer had control of the assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Certain Assets | The issuer reported certain assets and performed an evaluation of whether the assets were impaired. The following deficiencies were identified: · The firm did not perform any procedures to test the reliability of external information it used to test these assets. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 5 | Certain Assets | The issuer reported certain assets and performed an evaluation of whether the assets were impaired. The following deficiencies were identified: · The firm did not perform procedures to test the issuer's impairment analysis beyond testing its clerical accuracy. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 6 | Certain Assets | The issuer reported certain other assets. The following deficiencies were identified: · The firm did not perform any procedures to test the recoverability of these assets. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 7 | Certain Assets | The issuer reported certain other assets. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the presentation of these assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 8 | Certain Assets | The issuer reported certain other assets. The following deficiencies were identified: · The firm did not perform any procedures to test certain disclosures related to these assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 9 | Equity-Related Transactions | During the year the issuer issued equity instruments. The firm did not perform procedures to test certain of these issuances beyond comparing the number of shares to the purchase agreements. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
| 10 | Equity-Related Transactions | During the current and prior years the issuer granted stock options that vested based on a calculation. The firm did not perform any procedures to test the calculation that the issuer used to record stock-based compensation expense related to stock options that vested during the year. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
| 11 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Debt | The firm did not perform substantive procedures to test the debt beyond recalculating the balance based on an agreement that specified that the balance was past due. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Expenses | The firm did not perform substantive procedures to test certain expenses beyond comparing the amounts to bank statements. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer C5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Expenses | The firm did not perform any procedures to evaluate whether the issuer appropriately accounted for certain expenses. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Expenses | For the remaining types of expenses the firm selected items for testing from all types of expenses except for one. The following deficiencies were identified: · The firm did not perform substantive procedures to test certain selected expenses beyond comparing the amounts to a bank statement. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Expenses | For the remaining types of expenses the firm selected items for testing from all types of expenses except for one. The following deficiencies were identified: · The firm did not perform any procedures to evaluate whether the issuer appropriately accounted for certain of the selected expenses. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Expenses | For the remaining types of expenses the firm selected items for testing from all types of expenses except for one. The following deficiencies were identified: · The firm did not perform any substantive procedures to test the one type of expense for which it did not select any items for testing. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Expenses | The firm did not perform any substantive procedures to test the issuer's adjustment to expenses. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer D2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Planning Materiality | The firm did not establish a materiality level for the financial statements as a whole and determine the related amount of tolerable misstatement. (AS 2105.06 and .08) Financial statement audit only | AS 2105.6; AS 2105.8 | |
| 2 | Common Stock | The issuer recorded the issuance of common stock in exchange for services rendered. The firm did not sufficiently evaluate whether the issuer's use of the share price on the date of issuance to measure stock-based compensation was in conformity with FASB ASC Topic 718 Compensation - Stock Compensation because it did not evaluate whether there was an active market for the issuer's shares. (AS 2301.08) Financial statement audit only | AS 2301.8 |