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LaPorte, A Professional Accounting Corporation
United States · Triennially Inspected
- Inspection year
- 2024
- Report date
- 27-Mar-2025
- PCAOB release
- 104-2025-059
- Audits reviewed
- 1
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 14
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (14)
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 | Allowance for Credit/Loan Losses | The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm's approach for testing the qualitative reserve was to test the issuer's process. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions related to the qualitative factors the issuer used to determine the qualitative reserve because it limited its procedures to reading the issuer's ALL methodology and evaluating the consistency of the assumptions with those used in prior periods. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 2 | Allowance for Credit/Loan Losses | The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm's approach for testing the qualitative reserve was to test the issuer's process. The following deficiencies were identified: · The firm did not perform procedures to evaluate the relevance and reliability of external information that the issuer used to develop the significant assumptions related to qualitative factors. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 3 | Allowance for Credit/Loan Losses | The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm's approach for testing the qualitative reserve was to test the issuer's process. The following deficiencies were identified: · The firm did not perform sufficient procedures to test or identify and test any controls over the accuracy and completeness of issuer-produced information that the issuer used to develop the significant assumptions related to the qualitative factors because it limited its procedures to inquiries and performing certain recalculations and comparisons of certain of the information to other issuer-prepared information. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 4 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not test the accuracy and completeness of issuer-produced information and evaluate the relevance and reliability of external information used by the company's specialists to determine the fair value of the properties used as collateral. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | |
| 5 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of significant assumptions used by the company's specialists to determine the fair value of the properties used as collateral. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | |
| 6 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialists and whether the specialists' findings supported or contradicted the fair value of the collateral because it did not evaluate that the appraisals were not prepared as of the end of the year and perform additional procedures to address the potential effect of the timing difference on the fair value of the collateral. (AS 1105.A9 and .A10) Financial statement audit only | AS 1105.A10; AS 1105.A9 | |
| 7 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for certain assumptions it developed because it did not demonstrate how its assumptions took into account its understanding of the company's process that included certain information about the properties used as collateral so that its expectations considered the factors relevant to the estimate. (AS 2501.21 and .22) Financial statement audit only | AS 2501.21; AS 2501.22 | |
| 8 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reliability of external information that the firm used to develop its independent expectation of the specific reserve. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 9 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not perform procedures to demonstrate it had a reasonable basis for another assumption it developed and used in its independent expectation of the specific reserve. (AS 2501.22) Financial statement audit only | AS 2501.22 | |
| 10 | Allowance for Credit/Loan Losses | The issuer's ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm's approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company's specialists as audit evidence. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of another significant assumption that the issuer developed and it used in its independent expectation of the specific reserve. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 11 | Deposit Liabilities | The issuer used a service organization to process and record transactions related to deposit liabilities. The firm's approach to testing deposit liabilities included reliance on controls. The following deficiencies were identified: · The service auditor's report for the service organization contained a qualified opinion because controls were not operating effectively to achieve a control objective related to logical access to programs data and computer resources. The firm did not perform sufficient procedures to evaluate whether the service auditor's report provided sufficient appropriate audit evidence to support the firm's reliance on the service organization's controls because it concluded that the identified control deficiencies did not have an effect on its reliance on controls without performing procedures to support its conclusion. Further given the length of period under audit not covered by the service auditor's report the firm inappropriately limited its procedures to reading the bridge letter that only addressed a portion of that period of time. (AS 2601.16) Financial statement audit only | AS 2601.16 | |
| 12 | Deposit Liabilities | The issuer used a service organization to process and record transactions related to deposit liabilities. The firm's approach to testing deposit liabilities included reliance on controls. The following deficiencies were identified: · The firm did not perform procedures to test beyond inquiring of management certain complementary user controls over deposit liabilities identified in the service auditor's report. (AS 2601.14) Financial statement audit only | AS 2601.14 | |
| 13 | Deposit Liabilities | The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16 .18 and .37; AS 2315.19 .23 and .23A) Financial statement audit only | AS 2301.16; AS 2301.18; AS 2301.37; AS 2315.19; AS 2315.23; AS 2315.23A | |
| 14 | Journal Entries | The firm identified characteristics of potentially fraudulent entries or adjustments for testing determined that certain journal entries met those characteristics but limited its testing to haphazardly selected journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |