- Inspection year
- 2023
- Report date
- 23-May-2024
- PCAOB release
- 104-2024-082
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (8)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A8 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The issuer used an information technology (IT) system to initiate process and/or record transactions related to certain revenue and related accounts. In its testing of controls over a revenue-related account 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 following deficiency in the firm's testing of IT general controls (ITGCs) the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 2 | Revenue and Related Accounts | With respect to change management: The firm selected for testing change management controls over this IT system that consisted of the documentation review testing and approval of changes in a ticketing system prior to their migration into production. The firm did not perform sufficient procedures to test the operating effectiveness of these controls because it limited its selection of changes for testing to a population of changes that were initiated during the period under audit without considering changes initiated outside of the period under audit but made within the period under audit. (AS 2201.44) Both financial statement and ICFR audits | AS 2201.44 | |
| 3 | Revenue and Related Accounts | As a result of the firm's ITGC testing deficiency the firm did not perform sufficient substantive procedures to test a revenue-related account because it did not test or (as discussed above) sufficiently test controls over the accuracy and completeness of certain system-generated data that it used to substantively test the account balance. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 4 | Revenue and Related Accounts | The firm selected for testing a control over certain revenue that consisted of the issuer's inspection of source documents that were used to record the revenue. The firm did not perform sufficient procedures to test the operating effectiveness of this control because it did not test an aspect of the control involving the issuer's inspection of certain of these source documents. (AS 2201.44) Both financial statement and ICFR audits | AS 2201.44 | |
| 5 | Revenue and Related Accounts | The firm did not perform procedures to test a revenue-related account beyond (1) comparing the account balance at the end of the current year to the account balance at the end of the prior year (2) testing the clerical accuracy of a report the issuer used to calculate the account balance (3) recalculating the account balance using the same information that the issuer used to calculate the balance and (4) reconciling the account balance to the general ledger. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 | |
| 6 | Related Party Transactions | The firm identified and tested certain controls over related party transactions. The following deficiency was identified: • The firm selected for testing a control that consisted of the issuer's review of contracts with suppliers to determine if they were with a related party. The firm did not evaluate the specific review procedures that the control owner performed to assess whether contracts were with a related party. (AS 2201 .42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 7 | Related Party Transactions | The firm identified and tested certain controls over related party transactions. The following deficiency was identified: • For all contracts that were identified as contracts with related parties the firm did not identify and test any controls that addressed whether the transactions under these contracts were included in the issuer's related party disclosures. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 8 | Related Party Transactions | The firm identified and tested certain controls over related party transactions. The following deficiency was identified: • The firm selected for testing a control that consisted of the issuer's comparison of related party transactions to a list of related parties prepared by the issuer's legal department. The firm did not identify and test any controls over the completeness of the list of related parties that the control owner used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 |