- Inspection year
- 2023
- Report date
- 19-Dec-2024
- PCAOB release
- 104-2025-024
- 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
- 5
- 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 issuer records multiple types of revenue. For one type of revenue the firm compared issuer revenue information to customer sales contracts. The firm did not perform procedures to evaluate whether (1) the issuer met its performance obligations before revenue was recognized; and (2) the method used to recognize revenue for one contract was appropriate. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Revenue | The issuer records multiple types of revenue. For another type of revenue the firm did not perform any procedures to test the revenue beyond agreeing revenue from three selected locations to an issuer-prepared schedule. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 3 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 | |
| 4 | Uncorrected Misstatements | The firm identified unresolved differences related to revenue and intangible assets. The firm did not perform procedures to (1) address these identified differences and (2) accumulate these differences to evaluate whether they were material individually or in combination with other misstatements even though the firm had not designated an amount below which misstatements are clearly trivial and do not need to be accumulated. (AS 2810.10 and .17) Financial statement audit only | AS 2810.10; AS 2810.17 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The firm did not perform procedures to test the valuation of certain significant accounts. (AS 2501.07) In connection with our review the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure. Financial statement audit only | AS 2501.7 | Significant risk |
| 2 | Significant Accounts | The firm did not perform procedures to test the reliability of information used by the firm in its testing of the valuation of a significant account. (AS 1105.04 and .06) In connection with our review the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure. Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 3 | Significant Accounts | The firm did not evaluate the appropriateness of the issuer's accounting for and presentation and disclosure of these accounts. (AS 2301.08 and .11) In connection with our review the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure. Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Significant Accounts | The firm did not perform procedures to test the existence completeness and rights and obligations for these accounts beyond confirming certain information with external parties. (AS 2301.08 and .11) In connection with our review the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure. Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 5 | Journal Entries | The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |