- Inspection year
- 2024
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-056
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 11
- Report
- View PDF ↗
Deficiencies (8)
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 | Intangible Assets | The issuer performed a quantitative assessment of impairment of its intangible assets. The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used in the issuer's quantitative assessment beyond (1) inquiry (2) obtaining and reading the issuer's analysis certain internal documentation and letters of intent from customers and (3) performing a sensitivity analysis. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 2 | Intangible Assets | The issuer performed a quantitative assessment of impairment of its intangible assets. The firm did not sufficiently evaluate the reasonableness of the significant assumption related to the discount rate the issuer used in the quantitative assessment because it limited its procedures to comparing this assumption to the issuer's cost of borrowing. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 3 | Significant Transactions | During the year the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer's presentation of this transaction in the financial statements. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 4 | Significant Transactions | During the year the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain required disclosures related to this transaction. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized certain revenue based on its estimated progress toward complete satisfaction of the performance obligations. The firm did not perform procedures to test this revenue beyond selecting a sample of revenue transactions and vouching them to contracts and invoices. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 2 | Revenue | The issuer recognized certain revenue based on its estimated progress toward complete satisfaction of the performance obligations. The firm did not perform any procedures to test a disclosure related to this revenue. (AS 2301.08) Financial statement audit only | AS 2301.8 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The issuer recorded a significant account based on an agreement with an external party. The firm did not perform sufficient procedures to evaluate whether the issuer appropriately accounted for this significant account in accordance with GAAP because it limited its procedures to concluding that the significant account was appropriately recorded based on certain GAAP guidance that specifically excluded the significant account. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Significant Accounts | The issuer recorded a significant account based on an agreement with an external party. The firm did not evaluate the effect of the issuer's non-compliance with a requirement of the agreement on the accounting for the significant account. (AS 2301.08) Financial statement audit only | AS 2301.8 |