- Inspection year
- 2023
- Report date
- 12-Sep-2024
- PCAOB release
- 104-2024-141
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 5
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries: · The firm did not perform any procedures to evaluate whether (1) multiple contracts entered into at or near the same time with the same customer should be accounted for as a single contract and (2) costs associated with certain contracts were appropriately recorded as a reduction of revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries: · The firm did not perform procedures to evaluate whether all performance obligations were appropriately identified beyond obtaining and reading an issuer-prepared memo related to revenue recognition policies. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain revenue 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 | |
| 4 | Intangible Assets | The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified: · The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions including taking into account the issuer's intent and ability to carry out those assumptions. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 | Significant risk |
| 5 | Intangible Assets | The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified: · The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced data and reports it used in developing an independent expectation of another significant assumption. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 6 | Intangible Assets | The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified: · The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions beyond comparing prior year issuer forecasted amounts to prior year actual amounts. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue from multiple sources. The firm did not identify and evaluate a departure from GAAP related to (1) the issuer's omission of a revenue-related disclosure required by FASB ASC Topic 280 Segment Reporting and (2) the issuer's inaccurate disclosure regarding the amount of a certain type of revenue. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |