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Ernst & Young Han Young
South Korea · Ernst & Young Global Limited · Triennially Inspected
- Inspection year
- 2023
- Report date
- 19-Dec-2024
- PCAOB release
- 104-2025-018
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 2
- Part I.B deficiencies
- 1
- 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 A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer used multiple information-technology (IT) systems to initiate process and record transactions related to certain revenue and long-lived assets. The issuer outsourced its IT operations to a third-party service organization including the operation of certain IT automated controls ('ITACs'). The transaction data processed through these IT systems and the IT systems themselves which were maintained by the service organization were owned by the issuer. The firm selected for testing various ITACs over certain revenue and long-lived assets. The firm used the work of the service organization's auditor ('service auditor') as evidence of the design and operating effectiveness of these ITACs whereby the firm provided guidance to the service auditor related to the testing of these ITACs and the firm obtained the service auditor's report which described the service auditor's testing procedures and results. The firm did not perform sufficient procedures to test the design and operating effectiveness of these ITACs because the firm did not identify that the service auditor had not performed procedures to (1) test the design of these ITACs and (2) evaluate program customizations to support the use of a 'test of one' approach to test the operating effectiveness of these ITACs. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Revenue | The firm did not perform sufficient substantive procedures to test certain revenue because the firm did not subject all relevant revenue transactions to these procedures as it did not compile a complete population of transactions from which it made its selections for testing and the firm did not perform any other procedures to test the remaining revenue transactions. (AS 2301.08 and .13) Both financial statement and ICFR audits | AS 2301.8; AS 2301.13 |