- Inspection year
- 2024
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-055
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 4
- Part I.B deficiencies
- 6
- 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 | Inventory | The firm did not perform any substantive procedures to test whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Inventory | The firm's approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified: · The firm used certain data in its substantive procedures to test this reserve but did not perform any procedures to test or test any controls over the accuracy of this data. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 3 | Inventory | The firm's approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified: · The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived. (AS 2501.22) Financial statement audit only | AS 2501.22 | Significant risk |
| 4 | Inventory | The firm's approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified: · The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for the method used to develop its independent expectation because it did not demonstrate how its method took into account its understanding of the issuer's process including the significant assumptions used by the issuer so that its expectation considered the factors relevant to the estimate. (AS 2501.21 and .22) Financial statement audit only | AS 2501.21; AS 2501.22 | Significant risk |