- Inspection year
- 2024
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-058
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 15
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (15)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A14 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. To test certain revenue the firm relied on confirmations from customers. The issuer's sales personnel directly contacted the customers and obtained customer signatures as proof of customer receipt of goods purchased. The issuer provided the firm with the signed confirmations. The firm did not maintain control over the confirmation requests and responses through direct communication between the firm and the intended recipients of the confirmation requests. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 2 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to certain other revenue the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements and for the remaining months selected three cash receipts per month and vouched them to bank statements. The firm did not: · Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to certain other revenue the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements and for the remaining months selected three cash receipts per month and vouched them to bank statements. The firm did not: · Evaluate the relevance of the cash receipts information that was used in its testing; (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 4 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to certain other revenue the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements and for the remaining months selected three cash receipts per month and vouched them to bank statements. The firm did not: · Perform any procedures to test contra revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 5 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to another type of revenue the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements noting a difference between the amounts. The firm did not: · Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to another type of revenue the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements noting a difference between the amounts. The firm did not: · Perform any procedures to evaluate the difference identified between total cash receipts for this type of revenue and revenue recorded in the general ledger; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 7 | Revenue | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. With respect to another type of revenue the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements noting a difference between the amounts. The firm did not: · Evaluate the relevance of the cash receipts information that was used in its testing. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 8 | Accounts Receivable | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable. The firm did not perform sufficient alternative procedures to determine that the recorded amounts of the accounts receivable existed as of the year end because the procedures were limited to tracing to internal documents indicating the date of product delivery. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 9 | Significant Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform any procedures to test the valuation of aspects of the transaction. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 10 | Significant Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform procedures to evaluate the accounting for the transaction including the subsequent accounting. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 11 | Significant Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not perform procedures to evaluate the presentation and disclosures related to the transaction. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 12 | Significant Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer entered into a significant transaction during the year. The following deficiencies were identified: · The firm did not evaluate the business purpose (or lack thereof) of the transaction that appeared unusual due to its timing size or nature including whether it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts indicating the transaction was significant and unusual. (AS 2401.67) Financial statement audit only | AS 2401.67 | |
| 13 | Related Party Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 14 | Related Party Transactions | The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain disclosures required under FASB ASC Topic 850 Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | For certain revenue the firm did not sufficiently evaluate whether there was a contract with a customer. Specifically the firm did not assess whether it was probable that the issuer would collect substantially all of the consideration to which it would be entitled in exchange for the goods or services that would be transferred to the customer before revenue was recognized including consideration of contradictory evidence. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 |