- Inspection year
- 2020
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-053
- Audits reviewed
- 5
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 60%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (6)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ALL was to review and test management's process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors beyond (1) reading the issuer's analysis (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and (3) assessing whether certain changes or lack thereof to the basis points from prior year were directionally consistent with internal or external data. (AS 2501.09 .10 and .11) Both financial statement and ICFR audits | AS 2501.9; AS 2501.10; AS 2501.11 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not evaluate the review procedures that the control owner performed with respect to certain qualitative factors including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ALL was to review and test management's process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to certain qualitative factors beyond (1) reading the issuer's analysis (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and (3) assessing whether certain changes or lack thereof to the basis points from the prior year were directionally consistent with internal or external data. (AS 2501.09 .10 and .11) Both financial statement and ICFR audits | AS 2501.9; AS 2501.10; AS 2501.11 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer's general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ALL was to review and test management's process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors beyond (1) reading the issuer's analysis (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and performing a trend analysis and (3) assessing whether certain changes or lack thereof to the basis points from the prior year and the results from the resulting from the comparison and trend analysis were directionally consistent with internal or external data. (AS 2501.09 .10 and .11) Both financial statement and ICFR audits | AS 2501.9; AS 2501.10; AS 2501.11 |