- Inspection year
- 2024
- Report date
- 27-Sep-2024
- PCAOB release
- 104-2024-155
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- 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 A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified: · For one of these expectations the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence because the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it used to develop the expectation. (AS 1201.C6 and .C7; AS 2501.22) Financial statement audit only | AS 1201.C6; AS 1201.C7; AS 2501.22 | Significant risk |
| 2 | Certain Assets | The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified: · For the other expectation the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's conclusion appeared to contradict the issuer's assertion that these assets were not impaired and perform additional procedures or request the auditor-employed specialist to perform additional procedures to address the issue. (AS 1201.C7) Financial statement audit only | AS 1201.C7 | Significant risk |
| 3 | Certain Assets | The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified: · The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's evaluation of events occurring after the measurement date did not provide sufficient appropriate audit evidence because it did not take into account certain changes in the issuer's circumstances and other relevant conditions during the evaluation period. (AS 1201.C6 and .C7; AS 2501.28 and .29) Financial statement audit only | AS 1201.C6; AS 1201.C7; AS 2501.28; AS 2501.29 | Significant risk |
| 4 | Certain Assets | During the year the issuer capitalized costs associated with certain of these assets. The firm did not perform procedures to evaluate whether in conformity with relevant GAAP the issuer met certain criteria necessary to capitalize these costs beyond inquiry of management and a review of the issuer's internal plans. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |