- Inspection year
- 2024
- Report date
- 27-Feb-2025
- PCAOB release
- 104-2025-045
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 12
- Part I.B deficiencies
- 14
- 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 issuer recognized revenue from multiple business units. In determining the extent to which audit procedures over revenue should be performed at certain business units the firm did not evaluate whether (1) specific risks of material misstatement existed at these business units and (2) the risks of material misstatement the firm identified for the business units subject to more extensive audit procedures also applied to these business units such that in combination they presented a reasonable possibility of material misstatement. (AS 2101.11 and .12) Financial statement audit only | AS 2101.11; AS 2101.12 | |
| 2 | Other Investments | The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer or the company's specialist that were used by the company's specialist in determining the fair value for certain investments. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 3 | Other Investments | The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified: · The firm did not evaluate the relevance and reliability of certain data from sources external to the issuer that the company's specialist used to determine the fair value for certain investments. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 4 | Other Investments | The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified: · The firm did not perform or arrange to have another auditor perform auditing procedures to an investee's unaudited financial statements that the company's specialist used to determine the fair value of an investment. (AS 1105.B1 and .B3) Financial statement audit only | AS 1105.B1; AS 1105.B3 | Significant risk |
| 5 | Cash | The firm used an external digital confirmation platform to confirm certain cash but did not perform any procedures to support its reliance on this digital platform's ability to maintain control over the confirmation requests and responses. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 6 | Journal Entries | For certain of the issuer's business units the firm did not identify and select journal entries and other adjustments for testing without having an appropriate basis for excluding those business units. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not evaluate whether the method used by the issuer to recognize estimated revenue was in conformity with certain requirements of FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2501.10) Financial statement audit only | AS 2501.10 | |
| 2 | Revenue | The firm did not sufficiently evaluate whether the issuer's method to recognize revenue on a gross basis was appropriate because the firm did not evaluate certain indicators of net basis that existed. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 4 | Cash | The firm used an external digital confirmation platform to confirm certain cash but did not perform sufficient procedures to support its reliance on this digital platform's ability to maintain control over the confirmation requests and responses because its procedures were limited to obtaining an understanding of only certain aspects of this digital platform. (AS 2310.28) Financial statement audit only | AS 2310.28 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Related Party Transactions | The firm did not evaluate the relevance of certain evidence it used in its assessment of the recoverability of amounts due from related parties. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 2 | Related Party Transactions | The firm did not evaluate the presentation as a current asset of a portion of amounts due from a related party. (AS 2410.17) Financial statement audit only | AS 2410.17 | Significant risk |