- Inspection year
- 2023
- Report date
- 21-Dec-2023
- PCAOB release
- 104-2024-029a
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 9
- 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 | Intangible Assets | The issuer identified certain impairment indicators and performed an assessment of intangible assets for impairment at year-end. The firm did not perform sufficient substantive procedures to evaluate the issuer's conclusions regarding these potential indicators of impairment as its procedures were limited to inquiry of management reading a memorandum and other information prepared by the issuer reviewing unsigned memoranda of understanding related to the intangible assets and obtaining legal confirmations regarding any potential litigation related to the intangible assets. Further although the firm identified a potential indicator that was excluded from the issuer's assessment the firm inappropriately concluded that it was not applicable and did not evaluate how the issuer considered it in its assessment. (AS 2301.08 and .11; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2810.3 | Significant risk |
| 2 | Related Party Transactions | The firm did not identify and evaluate departures from GAAP related to the issuer's related party transactions. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | |
| 3 | Journal Entries | The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting journal entries for testing at one of the issuer's components and instead haphazardly selected entries for testing. Further the firm did not perform sufficient procedures to test certain of the selected journal entries because it did not examine the underlying support for the entries and limited its procedures to inquiry of management for one of these entries. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 4 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing at another one of the issuer's components without having an appropriate rationale for excluding that component. (AS 2401.61) Financial statement audit only | AS 2401.61 |