- Inspection year
- 2023
- Report date
- 25-Jul-2024
- PCAOB release
- 104-2024-121
- Audits reviewed
- 5
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 60%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 2
- 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 | Significant Transactions | The firm selected for testing a control that consisted of management's review of the accounting for a significant transaction. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of an estimate related to the significant transaction. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 2 | Significant Transactions | The firm selected for testing a control that consisted of management's review of the accounting for a significant transaction. The issuer engaged a company specialist to assist in developing an estimate related to this significant transaction. The firm did not perform procedures beyond obtaining general industry information to evaluate the reasonableness of certain significant assumptions that were developed by the issuer and used by the company specialist. Further the firm did not perform any procedures to evaluate the relevance and reliability of the general industry information. (AS 1105.04 and .06; AS 2501.16) Both financial statement and ICFR audits | AS 1105.4; AS 1105.6; AS 2501.16 | Significant risk |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | 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 | Significant risk |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure required by FASB ASC Topic 330 Inventory. (AS 2810.30 and .31) In connection with our review the issuer reevaluated its disclosures for inventory and determined that a disclosure was omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected this omission in a subsequent filing. Financial statement audit only | AS 2810.30; AS 2810.31 |