- Inspection year
- 2023
- Report date
- 21-Dec-2023
- PCAOB release
- 104-2024-028
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 16
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (16)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A14 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The issuer recognized revenue from different sources. For one source of revenue the following deficiencies were identified: · The firm did not perform any procedures to evaluate the relevance and reliability of external information it used to test revenue and accounts receivable. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Revenue and Related Accounts | The issuer recognized revenue from different sources. For one source of revenue the following deficiencies were identified: · The firm did not perform any procedures to test an estimate related to revenue. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 3 | Revenue and Related Accounts | The issuer recognized revenue from different sources. For one source of revenue the following deficiencies were identified: · The firm did not perform any procedures to evaluate whether the issuer was acting as either a principal or agent for certain revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Revenue and Related Accounts | The issuer recognized revenue from different sources. For one source of revenue the following deficiencies were identified: · The firm did not perform any substantive procedures to test the allowance for doubtful accounts. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 5 | Revenue and Related Accounts | For another source of revenue the firm did not perform any procedures to test or identify and test controls over the accuracy and completeness of a system-generated report it used to test the issuer's satisfaction of a performance obligation. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 6 | Revenue and Related Accounts | The firm did not perform any substantive procedures to examine material adjustments the issuer made to both sources of revenue during the course of preparing the financial statements. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 7 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not test the fair value of shares transferred to the sellers as part of the consideration related to the business combination. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2501.7 | |
| 8 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not evaluate whether the issuer should have recognized certain intangible assets acquired. (AS 2301.08) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2301.8 | |
| 9 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not test the fair value of contingent consideration at the acquisition date and yearend. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2501.7 | |
| 10 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · 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 805 Business Combinations. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 11 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reliability of external information used to test accounts receivable at the acquisition date. (AS 1105.04 and .06) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 12 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not perform procedures to test the fair value of accounts receivable at the acquisition date beyond observing the subsequent collection rate through year-end. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2501.7 | |
| 13 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The sample size the firm used in its substantive procedures to test accounts receivable at the acquisition date was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement and the allowable risk of incorrect acceptance. (AS 2315.16 .23 and .23A) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2315.16; AS 2315.23; AS 2315.23A | |
| 14 | Business Combinations | During the year the issuer acquired a business. The following deficiencies were identified: · The firm did not perform any procedures to test the completeness of accrued liabilities at the acquisition date. (AS 2301.08) Unrelated to our review the issuer reevaluated its accounting for this business combination and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2301.8 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to test whether the issuer satisfied its performance obligations before revenue was recognized. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Journal Entries | The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries because it limited its procedures to certain journal entries without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |