- Inspection year
- 2024
- Report date
- 30-Jan-2025
- PCAOB release
- 104-2025-033
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 5
- Report
- View PDF ↗
Deficiencies (5)
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's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified: · With respect to the substantive analytical procedure for the first type of revenue the firm did not develop expectations that were sufficiently precise to identify potential material misstatements because it did not consider factors that significantly affected the amounts being audited. (AS 2305.17) Financial statement audit only | AS 2305.17 | |
| 2 | Revenue | The firm's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified: · With respect to the substantive analytical procedure for the second type of revenue the firm identified differences in excess of the firm's established threshold but did not evaluate these differences beyond inquiring of management. (AS 2305.21) Financial statement audit only | AS 2305.21 | |
| 3 | Revenue | The firm's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified: · The firm selected a sample of transactions to perform its test of details over the first type of revenue. The firm did not perform procedures to test whether the issuer met the performance obligation prior to the recognition of revenue for certain transactions. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Accounts Payable | The firm did not perform procedures to test or identify and test controls over the completeness of certain transactions included in a system-generated report that it used in its substantive procedures. (AS 1105.10) Financial statement audit only | AS 1105.10 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's substantive procedures to test revenue included analytical procedures. The firm developed its expectation for its analytical procedures using recorded amounts of revenue. The firm did not evaluate whether this data was sufficiently relevant and reliable for purposes of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2305.16 |