- Inspection year
- 2023
- Report date
- 29-Mar-2024
- PCAOB release
- 104-2024-062
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 32
- Part I.B deficiencies
- 23
- Report
- View PDF ↗
Deficiencies (32)
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 | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls that address whether the relevant revenue recognition criteria were met prior to recognizing revenue. (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 these areas but did not identify the deficiencies below. The firm did not (1) perform substantive procedures to evaluate whether the relevant revenue recognition criteria had been met prior to recognizing revenue and (2) perform any substantive procedures to address certain fraud risks. (AS 2301.08 and .13) Both financial statement and ICFR audits | AS 2301.8; AS 2301.13 | |
| 3 | Related Party Transactions | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over the issuer's (1) identification of related parties and relationships and (2) accounting for and disclosure of related party transactions. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 4 | Related Party Transactions | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform any substantive procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. Further the firm did not perform any substantive procedures to evaluate whether related party transactions were properly accounted for and disclosed in the issuer's financial statements. (AS 2410.14 and .17) Both financial statement and ICFR audits | AS 2410.14; AS 2410.17 | Significant risk |
| 5 | Significant Accounts | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged an external specialist to develop an estimate related to this significant account. The firm did not identify and test any controls over the assumptions used by the company's specialist. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 6 | Significant Accounts | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing this estimate was to test the issuer's process and the firm engaged another external specialist to perform a review of the company's specialist's report. The following deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to an aspect of the issuer's methodology that was used to develop the estimate. (AS 2501.10) Both financial statement and ICFR audits | AS 2501.10 | Significant risk |
| 7 | Significant Accounts | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing this estimate was to test the issuer's process and the firm engaged another external specialist to perform a review of the company's specialist's report. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of the assumptions developed by the issuer and by the company's specialist including evaluating a significant difference between one of the assumptions and a significant assumption used by the issuer in another estimate tested. (AS 1105.A8b; AS 2501.16) Both financial statement and ICFR audits | AS 1105.A8b; AS 2501.16 | Significant risk |
| 8 | Significant Accounts | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm's approach for substantively testing this estimate was to test the issuer's process and the firm engaged another external specialist to perform a review of the company's specialist's report. The following deficiency was identified: · The firm did not perform sufficient procedures to evaluate whether the auditor-engaged specialist's work provided sufficient appropriate audit evidence because it did not perform additional procedures or request the auditor-engaged specialist perform additional procedures to address the disclaimer in the auditor-engaged specialist's report. (AS 1210.09 and .12) Both financial statement and ICFR audits | AS 1210.9; AS 1210.12 | Significant risk |
| 9 | Significant Accounts | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over certain attributes related to this significant account. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 10 | Financial Reporting Process and Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over journal entries and other adjustments made in the period-end financial reporting process. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 11 | Financial Reporting Process and Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform any substantive procedures to examine material adjustments made during the course of preparing the financial statements. (AS 2301.41) Both financial statement and ICFR audits | AS 2301.41 | |
| 12 | Financial Reporting Process and Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm identified fraud criteria to identify and select journal entries and other adjustments for testing and obtained a listing of journal entries that met the criteria. The firm did not perform any procedures to test the completeness of the listing of journal entries it used to identify journal entries that met the criteria. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 13 | Financial Reporting Process and Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not sufficiently test the journal entries that met the identified fraud risk criteria for evidence of possible material misstatement due to fraud because it limited its procedures to certain entries without having an appropriate rationale for limiting its testing to those journal entries. Further the firm did not examine the underlying support for those entries it selected for testing. (AS 2401.61) Both financial statement and ICFR audits | AS 2401.61 | |
| 14 | ITGCs | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm identified deficiencies related to ITGCs for several of the issuer's information systems but did not evaluate the severity of these deficiencies to determine whether the deficiencies individually or in combination were material weaknesses. (AS 2201.62) Both financial statement and ICFR audits | AS 2201.62 |
Issuer B12 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer recognized several types of revenue. With respect to two types of revenue the firm did not perform any procedures to evaluate whether the methods the issuer used to recognize this revenue were in conformity with GAAP. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform sufficient procedures to evaluate whether the issuer had satisfied its performance obligations prior to recognizing these two types of revenue because it limited its procedures to reviewing certain external information and/or testing that the issuer had received cash. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to these two types of revenue and another type of revenue the firm did not perform procedures to evaluate whether the issuer met certain other revenue recognition criteria prior to recognizing revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Long-Lived Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged an external specialist to determine the fair values of certain long-lived assets. The firm used an auditor-engaged specialist to perform reviews of the company's specialist's valuation reports. The following deficiency was identified: · The firm did not perform any procedures to evaluate the relevance and reliability of data the company's specialist obtained from external sources and used to develop the fair values. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 5 | Long-Lived Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged an external specialist to determine the fair values of certain long-lived assets. The firm used an auditor-engaged specialist to perform reviews of the company's specialist's valuation reports. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 6 | Long-Lived Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged an external specialist to determine the fair values of certain long-lived assets. The firm used an auditor-engaged specialist to perform reviews of the company's specialist's valuation reports. The following deficiency was identified: · The firm did not perform any procedures to evaluate whether the methods used by the company's specialist to develop the fair values were appropriate under the circumstances taking into account the requirements of GAAP. (AS 1105.A8c) Financial statement audit only | AS 1105.A8c | Significant risk |
| 7 | Long-Lived Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged an external specialist to determine the fair values of certain long-lived assets. The firm used an auditor-engaged specialist to perform reviews of the company's specialist's valuation reports. The following deficiency was identified: · The firm did not perform any additional procedures or request the auditor-engaged specialist perform additional procedures to address the disclaimers and limitations included in the auditor-engaged specialist's reports that affected the firm's use of the reports. (AS 1210.09 and .12) Financial statement audit only | AS 1210.9; AS 1210.12 | Significant risk |
| 8 | Cash | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm used an external digital confirmation platform to confirm certain cash but did not perform any procedures to support its reliance on this digital platform's ability to maintain control over the confirmation requests and responses. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 9 | Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm identified characteristics of potentially fraudulent entries or adjustments for testing but did not determine whether any journal entries met those characteristics and instead limited its testing to haphazardly selected journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 | |
| 10 | Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform sufficient procedures to test the completeness of the population of journal entries it used to select journal entries for testing because it did not identify unexplained differences between the general ledger balances it used to test the completeness and the general ledger balances that were included in the financial statements. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 11 | Subsequent Events | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform auditing procedures beyond reviewing disbursements for certain components with respect to the period after the balance-sheet date for purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure. (AS 2801.12) Financial statement audit only | AS 2801.12 | |
| 12 | Uncorrected Misstatements | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm identified uncorrected misstatements but did not evaluate whether the uncorrected misstatements were material individually or in combination with other misstatements including the effects of the uncorrected misstatements on the specific accounts and disclosures involved and the effects of the misstatements identified related to the prior year on the current year financial statements. (AS 2810.17 and .18) Financial statement audit only | AS 2810.17; AS 2810.18 |
Issuer C6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported certain assets. The following deficiency was identified: · The firm did not perform procedures to evaluate the relevance and reliability of certain information it obtained from external sources and used in its substantive procedures beyond obtaining information about the source's reputation and regulatory compliance. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Certain Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported certain assets. The following deficiency was identified: · The firm did not perform any procedures to evaluate the relevance and reliability of other information it obtained from external sources and used in its substantive procedures. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 3 | Certain Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported certain assets. The following deficiency was identified: · The firm did not perform any procedures to establish that the issuer had control over these assets. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Certain Assets | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported certain assets. The following deficiency was identified: · The firm did not perform any procedures to evaluate the appropriateness of the issuer's classification of these assets. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 5 | Revenue | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and evaluate departures from GAAP related to the issuer's omission of disclosures related to revenue. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 6 | Journal Entries | The firm's internal inspection program inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |