- Inspection year
- 2023
- Report date
- 24-Oct-2024
- PCAOB release
- 104-2024-170
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 18
- Report
- View PDF ↗
Deficiencies (11)
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 | Revenue | The issuer entered into certain revenue arrangements during the year. The firm did not perform procedures beyond comparisons to issuer-produced reports to test this revenue including testing the valuation of certain aspects of revenue. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 2 | Revenue | The issuer entered into certain revenue arrangements during the year. The firm did not evaluate the business purpose (or lack thereof) of these arrangements that appeared unusual due to their timing size or nature including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the arrangements. (AS 2401.67) Financial statement audit only | AS 2401.67 | Significant risk |
| 3 | Statement of Cash Flows | The firm did not perform any procedures to test the statement of cash flows. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform procedures to test revenue beyond tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Inventory | The firm did not perform procedures to test the existence of inventory beyond comparing inventory counts from the issuer's inventory records to records from the issuer's warehouses. (AS 2510.09) Financial statement audit only | AS 2510.9 | |
| 3 | Inventory | The firm did not perform procedures to test the inventory reserves beyond obtaining and reading a listing of obsolete items and the approval for the write off of certain inventory. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer C3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform procedures to test revenue beyond tracing all revenue transactions to issuer-prepared invoices and evaluating the appropriateness of the issuer's revenue recognition policy. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Intangible Assets | The firm did not perform procedures to evaluate the issuer's conclusion that there were no indicators of potential impairment for intangible assets even though the firm was aware such conditions existed. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 | |
| 3 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |