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Navarro Amper & Co.
Philippines · Deloitte Touche Tohmatsu Limited · Triennially Inspected
- Inspection year
- 2022
- Report date
- 23-May-2024
- PCAOB release
- 104-2024-087
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (9)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to long-lived assets and revenue including two instances of its enterprise resource planning (“ERP”) system. In its testing of controls over long-lived assets and revenue the firm tested various automated controls over long-lived assets and IT-dependent manual controls over revenue that used data and reports generated or maintained by certain of these IT systems. As a result of the deficiencies 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 | Long-Lived Assets | The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to long-lived assets and revenue including two instances of its enterprise resource planning (“ERP”) system. In its testing of controls over long-lived assets and revenue the firm tested various automated controls over long-lived assets and IT-dependent manual controls over revenue that used data and reports generated or maintained by certain of these IT systems. • With respect to change management the firm selected for testing a control that consisted of the issuer's testing and approval of application changes before their migration into the production environment. The firm did not test the design and operating effectiveness of this control over one of the instances of the issuer's ERP system. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 3 | Long-Lived Assets | The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to long-lived assets and revenue including two instances of its enterprise resource planning (“ERP”) system. In its testing of controls over long-lived assets and revenue the firm tested various automated controls over long-lived assets and IT-dependent manual controls over revenue that used data and reports generated or maintained by certain of these IT systems. • With respect to logical access the firm selected for testing controls that consisted of password configurations and the periodic review of user access. The firm did not test the design and operating effectiveness of these controls over one of the instances of the issuer's ERP system. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 4 | Long-Lived Assets | For long-lived assets which were affected by the audit deficiency discussed above related to change management the following additional deficiency was identified: The firm selected for testing certain automated controls over the purchase of long-lived assets that consisted of the (1) matching of invoices approved purchase orders and receiving/inspection reports related to acquired long-lived assets (2) recording of liabilities through unbilled payables for all goods and services received through the system and (3) approval of purchase orders in accordance with an approved authorization matrix. The firm did not test the design and operating effectiveness of these controls over one of the instances of the issuer's ERP system. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 5 | Revenue | For revenue which was affected by the audit deficiencies discussed above related to change management and logical access the following additional deficiency was identified: The firm's approach for testing revenue included performing tests of details for a sample of revenue transactions. The firm did not perform sufficient procedures to verify that each individual revenue transaction had an opportunity to be selected for testing because it did not establish a basis to support the sampling interval used to select transactions for testing and as a result did not select a sample that could be expected to be representative of the population. (AS 2315.24) Both financial statement and ICFR audits | AS 2315.24 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm selected for testing certain controls over revenue that consisted of (1) the issuer's verification of certain information used to recognize revenue (2) customer approval of draft invoices (3) management's review and approval of revenue accruals and (4) management's approval of invoice adjustments. The firm did not identify and test any controls over the accuracy and completeness of certain information used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Revenue | The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 3 | Revenue | The firm used certain information in its substantive testing of revenue but did not test or (as discussed above) test controls over the accuracy and completeness of this information. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 4 | Revenue | The firm used certain information in its testing of revenue that was obtained by the issuer from its customers but it did not perform any procedures to evaluate the reliability of this information. (AS 1105.04 and .06) Both financial statement and ICFR audits | AS 1105.4; AS 1105.6 |