- Inspection year
- 2024
- Report date
- 19-Dec-2024
- PCAOB release
- 104-2025-015
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 12
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (12)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing certain controls over revenue. The following deficiency was identified: · For certain controls over the recording of revenue that consisted of matching information from the invoice to other data the firm did not directly test the operating effectiveness of the controls 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 | |
| 2 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing certain controls over revenue. The following deficiency was identified: · For certain management review controls the firm did not evaluate the specific 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 firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing certain controls over revenue. The following deficiency was identified: · The firm did not perform procedures to test or identify and test any controls over the accuracy and completeness of certain system-generated reports it used to make its selections for testing the operating effectiveness of certain controls over revenue. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 4 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 5 | Certain Assets | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data and/or reports used in the operation of certain controls over a certain asset. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 6 | Cash | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing a control over the initiation and approval of wire transfers. The firm did not identify and test any controls over segregation of duties between the initiator the approver and the sender of wire transfers. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 |
Issuer B6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Information Technology General Controls | The firm tested certain ITGCs over the issuer's logical access and change management for the issuer's system. The following deficiency was identified: · The firm did not sufficiently evaluate the specific procedures that the control owners performed to determine whether to grant role access to users or whether the granted role access continued to be appropriate because its procedures to test the design and operating effectiveness did not include any procedures related to assessing the appropriateness of the roles configured within the system. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Information Technology General Controls | The firm tested certain ITGCs over the issuer's logical access and change management for the issuer's system. The following deficiency was identified: · The firm did not sufficiently test the design and operating effectiveness of certain ITGCs related to change management because its procedures to test the completeness of the population of changes were limited to observing the generation of change information from an application outside the issuer's primary system and obtaining an administrator activity log. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 3 | Information Technology General Controls | As a result of the deficiencies in the firm's ITGC testing the firm did not sufficiently test whether the information technology (IT) automated application controls and the IT-dependent manual controls it selected for testing over revenue and a certain asset were effective as each control was dependent on the effectiveness of ITGCs. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 4 | Revenue | The firm selected for testing certain review controls over revenue. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the appropriateness of the (1) timing of revenue recognition and (2) price changes from the issuer's system. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 5 | Revenue | The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Both financial statement and ICFR audits | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 6 | Certain Assets | The firm selected for testing certain review controls over a certain asset. The firm did not evaluate the specific 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 | Significant risk |