- Inspection year
- 2024
- Report date
- 27-Feb-2025
- PCAOB release
- 104-2025-050
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (4)
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 | Goodwill | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. During the year after identifying impairment indicators the issuer performed a quantitative assessment of impairment. At year end the issuer performed its annual goodwill impairment assessment using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified: · The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year beyond inquiry and obtaining and reading the company's specialist report. Further the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A10; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9; AS 2501.7 | Significant risk |
| 2 | Goodwill | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. During the year after identifying impairment indicators the issuer performed a quantitative assessment of impairment. At year end the issuer performed its annual goodwill impairment assessment using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the relevance of data related to comparable companies used by the company's specialist in the year-end quantitative assessment because it did not evaluate (1) the relative values of income statement accounts in concluding that the companies were comparable and (2) that the data used from certain of the comparable companies was significantly dated. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 3 | Goodwill | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. During the year after identifying impairment indicators the issuer performed a quantitative assessment of impairment. At year end the issuer performed its annual goodwill impairment assessment using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the reasonableness of a significant assumption developed and used by the company's specialist in the year-end quantitative assessment. (AS 1105.A8b) Financial statement audit only | AS 1105.A8a | Significant risk |
| 4 | Goodwill | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. During the year after identifying impairment indicators the issuer performed a quantitative assessment of impairment. At year end the issuer performed its annual goodwill impairment assessment using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified: · The firm did not identify and evaluate a GAAP departure related to the issuer's omission of a disclosure related to goodwill that is required by FASB ASC Topic 350 Intangibles – Goodwill and Other. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |