- Inspection year
- 2023
- Report date
- 21-Nov-2024
- PCAOB release
- 104-2025-003
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (2)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Non-Current Assets | The firm used an auditor-employed specialist to assist it in testing the fair value of certain non-current assets. The auditor-employed specialist's approach consisted of developing an independent expectation as a range of fair value outcomes using comparable publicly traded companies and precedent transactions in the sector. 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 firm did not evaluate whether the auditor-employed specialist's independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25) Financial statement audit only | AS 1201.C6; AS 1201.C7; AS 2501.25 | Significant risk |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm was instructed by the principal auditor to perform procedures to address certain risks of material misstatement identified by the principal auditor including a fraud risk related to management override of controls. The firm reported to the principal auditor that it responded to the identified fraud risk by performing procedures to test journal entries among other procedures. The firm did not perform procedures to select and test journal entries for certain fraud criteria identified by the firm. (AS 2401.61) Financial statement audit only | AS 2401.61 |