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KPMG Auditores Consultores Limitada
Chile · KPMG International Cooperative · Triennially Inspected
- Inspection year
- 2023
- Report date
- 24-Oct-2024
- PCAOB release
- 104-2024-169
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 5
- 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 | Revenue and Related Accounts | The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: · The firm selected for testing controls over certain revenue and accounts receivable and tested the controls through the second quarter of the year under audit. The firm did not perform procedures to update the results of its testing from this interim date to year end beyond inquiry of management. (AS 2201.55) Both financial statement and ICFR audits | AS 2201.55 | |
| 2 | Revenue and Related Accounts | The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: · The sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 3 | Revenue and Related Accounts | The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. 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 system generated information it used to test unbilled revenue and accounts receivable. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | For certain services the issuer offered discounts rebates and other concessions (collectively 'price adjustments') to customers and recognized revenue based on the gross invoiced price less any applicable price adjustments. To test revenue recognized from these services the firm selected a sample of customer invoices and agreed the net invoiced amounts to cash collections. The firm did not perform any substantive procedures to test the accuracy of the gross invoiced prices and applicable price adjustments. (AS 2301.08) Financial statement audit only | AS 2301.8 | Incorrect opinion |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm was instructed by the principal auditor to perform procedures to test journal entries and other adjustments to address the risk of management override of controls around the financial reporting processes at the group level. The firm identified fraud criteria to identify and select journal entries for testing and communicated the criteria to the principal auditor. The firm did not perform procedures to identify and test journal entries that met one of the criteria. (AS 2401.61) Financial statement audit only | AS 2401.61 | Incorrect opinion |