- Inspection year
- 2023
- Report date
- 21-Jun-2024
- PCAOB release
- 104-2024-118
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (4)
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 | Revenue | The firm did not perform any procedures to evaluate whether (1) the rate at which certain revenue was recognized was appropriate and (2) the performance obligations had been met prior to the recognition of certain of this revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Goodwill and Intangible Assets | The issuer engaged an external valuation specialist to perform an impairment analysis of goodwill and intangible assets at year end. The firm's approach for substantively testing the fair value was to test the issuer's process and the firm used an auditor-engaged specialist to evaluate the reasonableness of the significant assumptions the company's specialist used. The following deficiency was identified: · The firm did not perform any procedures to test or test any controls over the accuracy and completeness of certain issuer-produced data the company's specialist used in the impairment analysis. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 2 | Goodwill and Intangible Assets | The issuer engaged an external valuation specialist to perform an impairment analysis of goodwill and intangible assets at year end. The firm's approach for substantively testing the fair value was to test the issuer's process and the firm used an auditor-engaged specialist to evaluate the reasonableness of the significant assumptions the company's specialist used. The following deficiency was identified: · The firm did not sufficiently evaluate the reasonableness of the significant assumptions developed by the issuer because it did not identify that the auditor-engaged specialist did not perform sufficient procedures to evaluate the reasonableness of (1) certain significant assumptions because it limited its procedures to certain component(s) of the assumptions and/or obtaining certain external information (2) another significant assumption because it limited its procedures to obtaining certain external information and evaluating the consistency of the assumption with relevant industry information and (3) other significant assumptions because it limited its procedures to inquiry of management and comparing the assumptions to the prior year assumptions. (AS 1210.09 and .12; AS 2501.16) Financial statement audit only | AS 1210.9; AS 1210.12; AS 2501.16 | Significant risk |