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Ernst & Young S.A.
Luxembourg · Ernst & Young Global Limited · Triennially Inspected
- Inspection year
- 2023
- Report date
- 26-Apr-2024
- PCAOB release
- 104-2024-070
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- —
- 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 A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer used an information technology (IT) system to process and record transactions including those related to long-lived assets. In its testing over long-lived assets the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the deficiencies in the firm's testing of IT general controls the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46) ICFR audit only | AS 2201.46 | |
| 2 | Long-Lived Assets | The issuer used an information technology (IT) system to process and record transactions including those related to long-lived assets. In its testing over long-lived assets the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. ? The firm selected for testing a control over user access that consisted of the validation by the owner or owner's representative of access requests prior to the creation and modification of user access rights. The firm did not test the aspect of the control related to the modification of user access rights to the system. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 3 | Long-Lived Assets | The issuer used an information technology (IT) system to process and record transactions including those related to long-lived assets. In its testing over long-lived assets the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. · The firm selected for testing another control over user access that consisted of the periodic review and validation of the appropriateness of the access rights granted to users. The firm did not evaluate the specific review procedures that the control owner performed to determine whether the role(s) and related functions assigned to each user were appropriate. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | |
| 4 | Revenue | The firm selected for testing a configurable IT application control over certain revenue that consisted of the issuer's revenue system automatically pulling prices from a validated contract and blocking manual price changes at the order level. The firm did not test the aspect of the control related to the recording of sales revenue to ensure that the price used to record such revenue was based on the contract price within the issuer's revenue system. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Goodwill | The firm's approach for substantively testing the impairment of goodwill was to test the issuer's process. The firm did not sufficiently evaluate whether the method the issuer used to perform its impairment analyses was in conformity with the applicable financial reporting framework including the requirements of International Accounting Standard 36 Impairment of Assets (“IAS 36”) because the firm did not evaluate whether the period of cash flow projections the issuer used to evaluate goodwill for impairment was in accordance with IAS 36. (AS 2501.10) Financial statement audit only | AS 2501.10 | Significant risk |