- Inspection year
- 2023
- Report date
- 24-Oct-2024
- PCAOB release
- 104-2024-172
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 16
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (16)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A14 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm selected for testing controls that included the review of revenue. The firm did not evaluate the specific review procedures performed by the control owners to assess (i) that revenue was recognized in the appropriate period and (ii) the reasonableness of estimated hours to complete. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm selected for testing a control over the review of hours incurred. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 3 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced information used in the operation of the above controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not identify and test any controls over the identification of performance obligations in contracts determination of the transaction price and allocation of the transaction price to the identified performance obligations. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 5 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm selected for testing two controls that included the review of the presentation and disclosure of the financial statements. The firm did not evaluate the specific review procedures performed by the control owners to evaluate the reasonableness of a disclosure related to revenue. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 6 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not test or (as discussed above) test controls over the accuracy and completeness of issuer-produced information used in its substantive testing. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 7 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not perform procedures to test or identify and test controls over the accuracy and completeness of certain other issuer-produced information used in its substantive testing. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 8 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not perform procedures to test disclosures related to performance obligations expected to be recognized at year end and the periods over which the issuer expects to recognize those amounts beyond obtaining issuer-produced reports. (AS 2501.07) Both financial statement and ICFR audits | AS 2501.7 | |
| 9 | Revenue | The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified: · The firm did not perform procedures beyond inquiry of management to evaluate the reasonableness of significant assumptions related to estimated hours to complete. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 | |
| 10 | Accounts Receivable | The firm did not identify and test any controls over the existence and completeness of accounts receivable. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 11 | Accounts Receivable | The firm selected for testing two controls over the review of the allowance for doubtful accounts. The firm did not identify and test controls over the accuracy and completeness of the accounts receivable aging used in the operation of these two controls beyond identifying and testing a control over the accurate aging of outstanding invoices. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 12 | Accounts Receivable | The firm selected for testing two controls over the review of the allowance for doubtful accounts. With respect to the control over the accurate aging of outstanding invoices the firm did not directly test this control because its procedures were substantive in nature. (AS 2201.42 .44 and .B9) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44; AS 2201.B9 | Significant risk |
| 13 | Accounts Receivable | The firm sent positive confirmation requests to test accounts receivable. For certain positive confirmation requests for which it did not receive a response the firm did not perform alternative procedures that provided sufficient appropriate audit evidence to address the existence and accuracy of the accounts receivable. (AS 2310.31) Both financial statement and ICFR audits | AS 2310.31 | Significant risk |
| 14 | Journal Entries | The firm identified fraud criteria for journal entries. The firm did not perform sufficient procedures to test the journal entries that met the criteria because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61) Both financial statement and ICFR audits | AS 2401.61 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform procedures to test that the issuer satisfied its performance obligations prior to the recognition of revenue beyond obtaining an issuer-produced report and issuer-produced data. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Journal Entries | The firm identified fraud criteria for journal entries. The firm did not perform sufficient procedures to test the journal entries that met the criteria because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61) Financial statement audit only | AS 2401.61 |