- Inspection year
- 2024
- Report date
- 21-Nov-2024
- PCAOB release
- 104-2025-006
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recorded multiple types of revenue. For premium revenue the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified: · The expectations the firm used were not sufficiently precise because although disaggregated the firm's procedures consisted of comparisons of amounts and certain ratios to prior years without determining whether the prior-year amounts and ratios were sufficiently predictive of current-year amounts and ratios. (AS 2305.13 and .14) Financial statement audit only | AS 2305.13; AS 2305.14 | |
| 2 | Revenue | The issuer recorded multiple types of revenue. For premium revenue the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified: · The firm developed its expectations in part using data derived from the recorded amounts of revenue. The firm did not evaluate whether these data were sufficiently relevant and reliable for the purpose of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2305.16 | |
| 3 | Revenue | The issuer recorded multiple types of revenue. For premium revenue the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified: · The firm used certain system-generated data in its substantive testing of this revenue but did not test or in the alternative test any controls over the accuracy of these data. (AS 2305.16) Financial statement audit only | AS 2305.16 | |
| 4 | Revenue | The issuer recorded multiple types of revenue. For premium revenue the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified: · The firm did not establish an amount of difference from the expectation that could be accepted without further investigation. (AS 2305.20) Financial statement audit only | AS 2305.20 | |
| 5 | Revenue | For investment income the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. For the analytical procedures the firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships and whether its expectations of interest rates based on the trend over several previous years were sufficiently precise. (AS 2305.13 .14 and .17). Financial statement audit only | AS 2305.13; AS 2305.14; AS 2305.17 | |
| 6 | Revenue | For investment income the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. The firm did not evaluate whether the data used in the analytical procedures was sufficiently reliable for the purpose of achieving its audit objectives. (AS 2305.16) Financial statement audit only | AS 2305.16 | |
| 7 | Journal Entries | The firm did not appropriately consider the characteristics of potentially fraudulent journal entries in determining the criteria it used to identify and select journal entries for testing because it limited its procedures to certain journal entries recorded at year end without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |