- Inspection year
- 2024
- Report date
- 27-Sep-2024
- PCAOB release
- 104-2024-160
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer used certain qualitative factors to determine the qualitative reserve component of the ACLL. The firm selected for testing a control over the issuer's review of the qualitative reserve component. The firm did not evaluate the specific review procedures that the control owner performed to (1) evaluate the reasonableness of the assumptions used to develop the qualitative reserve component and (2) test the accuracy and completeness of the data used in the operation of the control. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 2 | Allowance for Credit/Loan Losses | The issuer used certain qualitative factors to determine the qualitative reserve component of the ACLL. The firm selected for testing a control over the issuer's review of the qualitative reserve component. The firm's approach for substantively testing the qualitative component of the ACLL was to test the issuer's process. The firm did not perform any procedures to evaluate the reasonableness of significant assumptions used by the issuer to develop the qualitative component of the ACLL. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 | Significant risk |
| 3 | Journal Entries | The firm did not select journal entries and other adjustments that met its identified fraud characteristics for testing. (AS 2401.61) Both financial statement and ICFR audits | AS 2401.61 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm selected for testing certain controls that consisted of the issuer's review of the ACLL. The firm did not evaluate the specific review procedures that the control owners performed to (1) evaluate the reasonableness of the assumptions used to develop the ACLL and (2) test the accuracy and completeness of the data used in the operation of these controls. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 2 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ACLL was to test the issuer's process. The firm did not perform any procedures to evaluate the reasonableness of significant assumptions used by the issuer to develop the ACLL. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 | Significant risk |