- Inspection year
- 2023
- Report date
- 22-Feb-2024
- PCAOB release
- 104-2024-048
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected transactions to test revenue using a sampling approach that was based on obtaining a certain level of audit evidence from its other substantive procedures. The sample size the firm used was too small to provide sufficient appropriate audit evidence over revenue because the firm's other procedures did not provide the level of substantive evidence needed to support its sampling approach. (AS 2315.16 .17 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.17; AS 2315.23; AS 2315.23A | |
| 2 | Operating Expenses | The firm did not perform any substantive procedures to test certain operating expenses. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm obtained the issuer's population of journal entries for certain subsidiaries and used it to identify journal entries that met a subset of its fraud criteria. The firm did not perform sufficient substantive procedures to test those journal entries because it limited its procedures to one journal entry without having an appropriate rationale for limiting its testing to that journal entry. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 2 | Journal Entries | The firm obtained the issuer's population of journal entries for certain subsidiaries and used it to identify journal entries that met a subset of its fraud criteria. The firm did not perform procedures to identify journal entries and other adjustments that met its other fraud criteria and test those journal entries and adjustments that met these criteria. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 3 | Journal Entries | For the subsidiaries not included in the journal entry population described above the firm did not perform any procedures to identify and select journal entries and other adjustments for testing without having an appropriate basis for excluding those subsidiaries. (AS 2401.61) Financial statement audit only | AS 2401.61 |