- Inspection year
- 2023
- Report date
- 22-Aug-2024
- PCAOB release
- 104-2024-126
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (11)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer used an information technology (IT) system to initiate process and/or record transactions related to revenue and related accounts and long-lived assets. In its testing of controls over revenue and related accounts as well as long-lived assets the firm tested various IT-dependent controls that used data and reports generated or maintained by this IT system. The firm selected for testing a change management control 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 procedures to test the operating effectiveness of this control beyond inquiries of management and obtaining a list of all changes that occurred during the year. (AS 2201.44) Both financial statement and ICFR audits | AS 2201.44 | |
| 2 | Long-Lived Assets | The issuer used an information technology (IT) system to initiate process and/or record transactions related to revenue and related accounts and long-lived assets. In its testing of controls over revenue and related accounts as well as long-lived assets the firm tested various IT-dependent controls that used data and reports generated or maintained by this IT system. The firm selected for testing a change management control 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. As a result of this deficiency in the firm's testing of an IT general control (ITGC) the firm's testing of these IT-dependent controls was not sufficient. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 3 | Revenue and Related Accounts | For revenue and related accounts the following additional deficiency related to the firm's testing of controls were identified: the firm selected for testing a control related to a revenue reconciliation. The firm did not perform procedures beyond inquiry to evaluate whether this control could effectively prevent or detect material misstatements. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 4 | Revenue and Related Accounts | For revenue and related accounts the following additional deficiency related to the firm's testing of controls were identified: the firm used the work of the issuer's internal audit as evidence of the operating effectiveness of certain controls selected for testing over revenue and related accounts. The firm or the issuer's internal audit did not perform procedures beyond inquiry to evaluate whether these controls could effectively prevent or detect material misstatements. Further the issuer's internal audit tested certain of these controls through an interim date but the firm did not perform any procedures to update the results of the testing from that interim date to year end. (AS 2201.42 .44 and .55) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44; AS 2201.55 | |
| 5 | Revenue and Related Accounts | For revenue and related accounts the following additional deficiency related to the firm's testing of controls were identified: the firm used the work of the issuer's internal audit as evidence of the operating effectiveness of certain controls selected for testing over revenue and related accounts. The firm or the issuer's internal audit did not perform procedures beyond inquiry to evaluate whether these controls could effectively prevent or detect material misstatements. The firm's use of the work of internal audit did not provide sufficient appropriate audit evidence that controls related to estimating costs to complete were operating as designed given the significant amount of subjectivity and judgment involved in these controls. (AS 2201.19; AS 2605.20 and .21) Both financial statement and ICFR audits | AS 2201.19; AS 2605.20; AS 2605.21 | |
| 6 | Revenue and Related Accounts | The firm performed tests of details over a sample of revenue and related accounts transactions. The firm did not perform procedures to test or test any controls over the completeness of certain system-generated reports from which it made its selections for testing. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 7 | Revenue and Related Accounts | As a result of the firm's ITGC testing deficiency the firm did not perform sufficient substantive procedures to test revenue and related accounts because it did not test or sufficiently test controls over the accuracy and completeness of certain system-generated data that it used to substantively test these account balances. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 8 | Long-Lived Assets | For long-lived assets the following additional deficiency related to the firm's testing of controls were identified: The firm selected for testing a control related to performing an impairment analysis on land. The firm did not perform procedures beyond inquiry to evaluate whether this control could effectively prevent or detect material misstatements. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 9 | Long-Lived Assets | For long-lived assets the following additional deficiency related to the firm's testing of controls were identified: the firm used the work of the issuer's internal audit as evidence of the operating effectiveness of certain controls selected for testing over long-lived assets. The firm or the issuer's internal audit did not perform procedures beyond inquiry to evaluate whether these controls could effectively prevent or detect material misstatements. Further the issuer's internal audit tested these controls through an interim date but the firm did not perform any procedures to update the results of that testing from that interim date to year end. (AS 2201.42 .44 and .55) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44; AS 2201.55 | |
| 10 | Long-Lived Assets | To substantively test long-lived assets the firm selected additions to and disposals of long-lived assets that exceeded a monetary threshold. The firm did not perform any procedures to test the remaining population of additions and disposals. (AS 1105.27; AS 2301.08) Both financial statement and ICFR audits | AS 1105.27; AS 2301.8 | |
| 11 | Long-Lived Assets | As a result of the firm's ITGC testing deficiency the firm did not perform sufficient substantive procedures to test long-lived assets because it did not test or sufficiently test controls over the accuracy and completeness of certain system-generated data that it used to substantively test these account balances. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 |