- Inspection year
- 2024
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-057
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 24
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (24)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A24 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not test transaction prices used in recording revenue for one business entity. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not test or identify and test any controls over the completeness of a system-generated report used in its substantive procedures to test revenue for this business entity. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | Significant risk |
| 3 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not perform any procedures to test the occurrence and allocation of certain revenue for another business entity. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not perform sufficient procedures to test certain revenue for the above business entity and a third business entity because its procedures were limited to (1) agreeing revenue to sales invoices and (2) documenting the terms of the agreement with customers for certain transactions. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 5 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The sample sizes the firm used in its substantive procedures to test revenues for each of the three above business entities were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement for the populations the allowable risk of incorrect acceptance and the characteristics of the populations. (AS 2315.16 .19 .23 and .23A) Both financial statement and ICFR audits | AS 2315.16; AS 2315.19; AS 2315.23; AS 2315.23A | Significant risk |
| 6 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not perform sufficient procedures to test revenue for a fourth business entity because it did not test the adjustment of revenue for the redemption of gift cards. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 7 | Revenue | The issuer recognized revenue from multiple business entities. The following deficiencies were identified: · The firm did not perform sufficient procedures to test revenue for a fifth business entity because its procedures were limited to agreeing revenue to issuer-produced sales invoices. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 8 | Revenue | The firm selected for testing a control over the review of a revenue variance analysis but 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 | Significant risk |
| 9 | Revenue | The firm did not perform any procedures to test the disclosure related to revenue allocated to remaining performance obligations. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 10 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm did not identify and test any controls over accounts receivable for one of the issuer's business entities. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 11 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm selected for testing a control over the review of outstanding accounts receivable for another business entity but did not perform any procedures to test the design and operating effectiveness of the control. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 12 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm selected for testing a control over the review of delinquent accounts receivable for a third business entity but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the reserve for the recorded accounts receivable. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 13 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm did not test or test controls over the accuracy and completeness of system-generated reports used in its substantive testing. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | |
| 14 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified: · The firm did not perform any procedures over accounts receivable selected for testing that were not collected or were only partially collected in subsequent periods. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 | |
| 15 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified: · The firm did not perform any procedures to test whether services had been rendered prior to the issuer's recording of certain unbilled receivables. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 | |
| 16 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified: · The sample sizes the firm used in its substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size including tolerable misstatement for the populations the allowable risk of incorrect acceptance and the characteristics of the populations. (AS 2315.16 .19 .23 and .23A) Both financial statement and ICFR audits | AS 2315.16; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 17 | Accounts Receivable | The issuer reported accounts receivables including unbilled receivables for multiple business entities. The firm did not perform sufficient procedures to test the valuation of accounts receivable and unbilled receivables because its procedures to test the allowance for doubtful accounts were limited to inquiry of management. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 | |
| 18 | Cash | The firm did not perform procedures beyond obtaining a certification from issuer personnel to extend its conclusions regarding the existence of cash on hand from the interim date in which the audit procedures were performed to year end. (AS 2301.45) Both financial statement and ICFR audits | AS 2301.45 | Significant risk |
| 19 | Cash | The firm did not perform any procedures to test certain other cash held at banking institutions. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 20 | Goodwill | The firm selected for testing certain controls that included the review of goodwill and intangible assets for potential impairment. The firm did not evaluate the specific review procedures performed by the control owners to assess the reasonableness of the methodologies and assumptions used in the issuer's goodwill and indefinite-lived intangible assets impairment analyses. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 21 | Goodwill | The firm did not perform any procedures to test (1) the appropriateness of the issuer's determination that it operated as a single reporting unit for purposes of its impairment analysis in accordance with FASB ASC Topic 350 Intangibles – Goodwill and Other and (2) whether the issuer's conclusion that the customer relationship intangible asset had an indefinite life was in accordance with FASB ASC Topic 350. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 22 | Journal Entries | The firm did not (1) appropriately consider the characteristics of potentially fraudulent journal entries when identifying and selecting journal entries for testing and (2) examine the underlying support for journal entries selected for testing. (AS 2401.61) Both financial statement and ICFR audits | AS 2401.61 | |
| 23 | Corrected and Uncorrected Misstatements | The firm identified corrected and uncorrected misstatements during its substantive audit procedures. The firm did not evaluate whether the uncorrected misstatements were material individually or in combination with other misstatements. (AS 2810.17) Both financial statement and ICFR audits | AS 2810.17 | |
| 24 | Corrected and Uncorrected Misstatements | The firm identified corrected and uncorrected misstatements during its substantive audit procedures. The firm did not evaluate the effects of the corrected and uncorrected misstatements on its conclusions regarding the effectiveness of ICFR. (AS 2201.B8) Both financial statement and ICFR audits | AS 2201.B8 |