- Inspection year
- 2024
- Report date
- 27-Feb-2025
- PCAOB release
- 104-2025-044
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- 11
- Report
- View PDF ↗
Deficiencies (7)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A7 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Audit Evidence | The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor's report. Specifically the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented (2) objectives of the procedures were achieved and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05) Financial statement audit only | AS 1105.4; AS 1201.5 | |
| 2 | Debt | The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain required disclosures related to debt. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 3 | Debt | The firm did not evaluate whether the issuer's accounting for debt was in conformity with certain requirements of GAAP. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Significant Accounts | The firm did not perform any substantive procedures to test an accounting estimate in a significant account. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 5 | Revenue | The firm selected a sample to test revenue transactions. The following deficiencies were identified: · The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement for the population the allowable risk of incorrect acceptance and the characteristics of the population. (AS 2315.16 .19 .23 and .23A) Financial statement audit only | AS 2315.16; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 6 | Revenue | The firm selected a sample to test revenue transactions. The following deficiencies were identified: · For the transactions selected for testing the firm did not perform any procedures to evaluate the terms and conditions of the issuer's contracts with these customers to determine if the revenue was recognized in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 7 | Journal Entries | The firm did not perform procedures to identify and test the journal entries that met certain of its fraud criteria. In addition the firm obtained a listing of journal entries and used it to identify journal entries that met certain other of its fraud criteria. The firm did not perform sufficient substantive procedures to test the journal entries that met this other criteria because it (i) limited its procedures to certain journal entries without having an appropriate rationale for limiting its testing to those journal entries and (ii) did not examine the underlying support for those entries it selected for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |