- Inspection year
- 2022
- Report date
- 07-Nov-2023
- PCAOB release
- 104-2024-040
- Audits reviewed
- 15
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 7%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 1
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The issuer recognized revenue when customer invoices were generated based on shipment information that was entered into the issuer's systems. The firm did not identify and test any controls that addressed whether customer invoices were associated with valid customer orders and shipments. Further the firm did not identify and test any controls that addressed whether the performance obligation had been satisfied when revenue was recognized. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Revenue | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The firm selected for testing a control that consisted of the issuer's review and approval of certain revenue deductions. The firm did not test or test any controls over the accuracy and completeness of the system-generated report that it used to select its samples for testing this control. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 3 | Inventory | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The firm selected for testing controls over inventory but did not identify and test any controls over the accuracy and completeness of certain system-generated data or reports that the control owners used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Inventory | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The firm did not identify and test any controls that addressed whether the unit costs the issuer used to record inventory were based on the standard material labor and overhead rates that the issuer had determined. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 5 | Inventory | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. As a result of the firm's control testing deficiencies discussed above the firm did not perform sufficient substantive procedures as follows: · The sample sizes the firm used in certain of its substantive procedures to test inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 6 | Inventory | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. As a result of the firm's control testing deficiencies discussed above the firm did not perform sufficient substantive procedures as follows: · The firm did not perform procedures to test or sufficiently test controls over the accuracy and completeness of a system-generated report that it used in its substantive testing of inventory. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 7 | Inventory | The firm's internal inspection program inspected this audit and reviewed this area but did not identify the deficiencies below. The firm's substantive procedures to test the unit cost of certain inventory included selecting a sample of items for testing. The firm did not perform sufficient procedures to test the labor and overhead costs of the selected items because the firm did not test the labor and overhead rates the issuer had determined beyond reviewing the nature of the cost types that the issuer used to calculate the overhead rates. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 |