- Inspection year
- 2024
- Report date
- 21-Nov-2024
- PCAOB release
- 104-2025-008
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 9
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (9)
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 firm selected for testing controls that consisted of the issuer's review of revenue recognized over time. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Inventory | The firm selected for testing controls that consisted of the issuer's review of inventory. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 3 | Inventory | The firm selected for testing controls that consisted of the issuer's review of inventory. The firm did not identify and test any controls to address whether inventory was recorded at the lower of cost or net realizable value. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 4 | Inventory | The issuer recognized an allowance for slow-moving and obsolete inventories that included a general reserve. The firm did not evaluate the reasonableness of the significant assumptions the issuer used to develop the general reserve. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 | Significant risk |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified: · The firm did not identify that the auditor-engaged specialist did not perform procedures beyond inquiry to evaluate the reasonableness of certain significant assumptions the issuer used to develop the fair value of this account and perform additional procedures or request the auditor-engaged specialist to perform additional procedures to address the issue. (AS 1210.09 and .12; AS 2501.16) Financial statement audit only | AS 1210.9; AS 1210.12; AS 2501.16 | Significant risk |
| 2 | Significant Accounts | The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified: · The firm did not perform procedures to test or in the alternative identify and test controls over the accuracy and completeness of certain issuer-produced information the issuer used to develop the fair value of this account. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 3 | Significant Accounts | The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified: · The firm did not perform procedures to evaluate the relevance and reliability of certain information from external sources the issuer used to develop the fair value of this account. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 4 | Significant Accounts | The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified: · The firm did not perform procedures beyond a comparison to prior year amounts to evaluate the reasonableness of certain components of a significant assumption the issuer used to develop the fair value of this account. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 5 | Significant Accounts | The firm did not perform substantive procedures beyond certain recalculations to test the valuation of certain other significant accounts. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |