- Inspection year
- 2023
- Report date
- 27-Sep-2024
- PCAOB release
- 104-2024-149
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 10
- Part I.B deficiencies
- 14
- Report
- View PDF ↗
Deficiencies (10)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Digital Assets | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported digital assets. The following deficiency was identified: · The firm did not test the valuation of certain digital assets at year end. (AS 2501.07) Unrelated to our review the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. 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 misstatement in a subsequent filing by revising the presentation and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2501.7 | |
| 2 | Digital Assets | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported digital assets. The following deficiency was identified: · The firm did not evaluate the appropriateness of the issuer's presentation of digital assets. (AS 2301.08 and .13) Unrelated to our review the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. 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 misstatement in a subsequent filing by revising the presentation and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Digital Assets | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported digital assets. The following deficiency was identified: · The firm did not evaluate the relevance and reliability of external data it used to test digital assets. (AS 1105.04 and .06) Unrelated to our review the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. 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 misstatement in a subsequent filing by revising the presentation and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 4 | Digital Assets | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer reported digital assets. The following deficiency was identified: · The firm did not perform any procedures to establish that the issuer had control over the digital assets to support its rights and obligations. (AS 2301.08 and .13) Unrelated to our review the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. 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 misstatement in a subsequent filing by revising the presentation and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 5 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to certain revenue the firm did not test whether (1) a contractual arrangement was entered into with the customer (2) the issuer satisfied its performance obligations prior to the recognition of revenue (3) the issuer had rights and obligations to the customer payments and (4) the rate charged to the customer was in accordance with the terms of the arrangement. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not evaluate the relevance and reliability of external data it used to test this revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 7 | Other Income | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform procedures beyond obtaining a management representation letter to test other income including evaluating whether the issuer's accounting for the recognition of other income was in conformity with GAAP. (AS 2301.08)The firm did not perform procedures beyond obtaining a management representation letter to test other income including evaluating whether the issuer's accounting for the recognition of other income was in conformity with GAAP. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The firm did not perform any procedures to test the fair value of certain significant accounts including consideration of contradictory information that was included in the work papers. (AS 2501.07; AS 2810.03) Financial statement audit only | AS 2501.7; AS 2810.3 | Significant risk |
| 2 | Goodwill | The issuer engaged a valuation specialist to perform its annual goodwill impairment analyses. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the company's specialist. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 3 | Goodwill | The issuer engaged a valuation specialist to perform its annual goodwill impairment analyses. The firm did not perform any procedures to evaluate the relevance and reliability of external data and test the accuracy and completeness of issuer-prepared data that the company's specialist used to develop certain significant assumptions. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |