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Salles, Sáinz - Grant Thornton, S.C.
Mexico · Grant Thornton International Limited · Triennially Inspected
- Inspection year
- 2023
- Report date
- 29-Mar-2024
- PCAOB release
- 104-2024-063
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 5
- Report
- View PDF ↗
Deficiencies (6)
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 determined that it had a single cash-generating unit (“CGU”) for purposes of evaluating intangible and long-lived assets for possible impairment and used a discounted cash flow method to determine the recoverable amount of this CGU in its annual impairment analysis. The firm's approach for substantively testing the impairment of an intangible asset was to review and test the issuer's process. The following deficiency was identified: · The firm did not sufficiently evaluate whether the method the issuer used to determine the recoverable amount of the CGU was in conformity with the applicable financial reporting framework including the requirements of International Accounting Standard (IAS) 36 Impairment of Assets because it did not evaluate whether the issuer's use of a single CGU to evaluate the intangible asset for possible impairment was appropriate and in accordance with IAS 36. (AS 2501.10) Financial statement audit only | AS 2501.10 | |
| 2 | Intangible Assets | The issuer determined that it had a single cash-generating unit (“CGU”) for purposes of evaluating intangible and long-lived assets for possible impairment and used a discounted cash flow method to determine the recoverable amount of this CGU in its annual impairment analysis. The firm's approach for substantively testing the impairment of an intangible asset was to review and test the issuer's process. The following deficiency was identified: · The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the issuer to determine the recoverable amount of the CGU including the Issuer's intent and ability to carry out those assumptions. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 | |
| 3 | Intangible Assets | The firm did not identify and evaluate a departure from IFRS related to an error in the issuer's disclosure of the intangible asset within its impairment footnote in accordance with IAS 1 Presentation of Financial Statements. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 4 | Long-Lived Assets | The firm did not perform procedures to evaluate whether there were indicators of potential impairment for certain long-lived assets and right of use assets beyond reading the issuer's impairment policy. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Accruals and Other Liabilities | The firm's internal inspection program had inspected this audit and reviewed this area and identified the deficiency below. The firm was instructed by the principal auditor to perform certain procedures to test various inputs including certain rates used by the issuer in the determination of a liability. The firm did not perform procedures to test the accuracy of these rates beyond comparing them to information provided by either the issuer or principal auditor. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Control Deficiencies | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below. The firm was instructed by the principal auditor to test certain controls evaluate the severity of identified control deficiencies and communicate any deficiencies to the principal auditor upon identification. The firm did not evaluate the severity of identified control deficiencies to determine whether the deficiencies in combination with other deficiencies constituted a material weakness. (AS 2201.62) ICFR audit only | AS 2201.62 |