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Deloitte Touche Tohmatsu
Hong Kong · Deloitte Touche Tohmatsu Limited · Triennially Inspected
- Inspection year
- 2023
- Report date
- 23-May-2024
- PCAOB release
- 104-2024-079
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (2)
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 | Variable Interest Entities | The issuer derives revenue through consolidated VIEs including their subsidiaries and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs including the validity and enforceability of contractual arrangements with the VIEs and their shareholders. The following deficiency was identified: • The firm did not identify and test any controls over the issuer's review of the legal opinion prepared by the company's specialist which described uncertainties regarding the interpretation and application of current laws and regulations related to the structure of the VIEs and evaluation of the effect of such uncertainties on its ability to consolidate the VIEs. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Variable Interest Entities | The issuer derives revenue through consolidated VIEs including their subsidiaries and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs including the validity and enforceability of contractual arrangements with the VIEs and their shareholders. The following deficiency was identified: • The firm did not perform substantive procedures to evaluate the nature of the uncertainties described in the legal opinion prepared by the company's specialist and perform procedures to address the risks associated with those uncertainties. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 |