- Inspection year
- 2023
- Report date
- 21-Nov-2024
- PCAOB release
- 104-2025-011
- Audits reviewed
- 5
- Audits w/ Part I.A deficiencies
- 5
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 13
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (13)
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 | Related Party Receivable | The firm did not identify and evaluate an error related to the presentation of a related party receivable in the issuer's balance sheet in accordance with FASB ASC Topic 210 Balance Sheet. (AS 2410.17; AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its presentation of this related party receivable and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | |
| 2 | Revenue | The firm did not perform any procedures to evaluate the reliability of certain information it obtained from external sources and used in its substantive procedures to test certain sales. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 3 | Inventory | To test the existence of inventory the firm selected a sample of items biased towards high-dollar value individual items. The firm did not perform any procedures to test the remaining population of inventory. (AS 2315.24) Financial statement audit only | AS 2315.24 | |
| 4 | Inventory | To test the existence of inventory the firm selected a sample of items biased towards high-dollar value individual items. The firm did not perform any procedures to test the cost of inventory. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any procedures to evaluate the terms and conditions of the issuer's arrangements with its customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm also did not perform any procedures to test or in the alternative identify and test controls over the accuracy and completeness of certain issuer-produced information it used in its substantive procedures. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 4 | Digital Assets | The firm did not perform any substantive procedures to test digital assets. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Certain Liabilities | The firm did not perform any substantive procedures to test certain liabilities. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Convertible Debt | The issuer engaged a valuation specialist to determine the fair value of convertible debt. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 2 | Convertible Debt | The issuer engaged a valuation specialist to determine the fair value of convertible debt. The firm did not perform any procedures to test the accuracy and completeness of issuer-produced data and evaluate the relevance and reliability of data from external sources that were used by the company's specialist. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
Issuer D1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Possible Illegal Acts | During the audit the firm became aware of information concerning possible illegal acts by the issuer. The firm did not evaluate the information concerning the possible illegal acts to obtain (1) an understanding of the nature of the acts and the circumstances in which they occurred and (2) sufficient other information to evaluate the effect on the financial statements. (AS 2405.07 and 10) Financial statement audit only | AS 2405.7; AS 2405.10 |
Issuer E1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investment Securities | The firm did not perform procedures to test or identify and test controls over the accuracy of certain data used to determine the valuation of certain investment securities beyond testing the accuracy of the data in the prior year. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |