- Inspection year
- 2024
- Report date
- 28-Apr-2025
- PCAOB release
- 104-2025-079
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 25
- Part I.B deficiencies
- 9
- Report
- View PDF ↗
Deficiencies (25)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A22 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform a test of details to address an identified fraud risk related to certain revenue; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not evaluate whether a certain contract was with a customer and whether the issuer had identified all of the performance obligations; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Revenue | The firm did not evaluate whether the counterparty for one contract was a customer or acting as an agent for the issuer; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Revenue | The firm did not evaluate whether certain contracts constituted transactions with related parties requiring disclosure within the financial statements; (AS 2410.14 and .17) Financial statement audit only | AS 2410.14; AS 2410.17 | |
| 5 | Revenue | The firm did not perform any procedures to test the allocation of the transaction price to the separate performance obligations for a certain contract; (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Revenue | The firm did not evaluate for a certain type of revenue whether it was probable that the issuer would collect substantially all of the consideration to which the issuer was entitled in exchange for the satisfaction of its performance obligations. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 7 | Revenue | The issuer disclosed disaggregated revenue by source. The firm did not test the accuracy and completeness of the disclosure including addressing a difference between the amounts disclosed and the amounts per the firm's work papers. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 | |
| 8 | Accounts Receivable | The firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable. For confirmations returned with exceptions and for those for which differences were identified through alternative procedures the firm did not sufficiently evaluate the nature of those exceptions as it limited its procedures to inquiry. (AS 2310.33) Financial statement audit only | AS 2310.33 | |
| 9 | Certain Assets and Liabilities | The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not sufficiently evaluate whether methods the company's specialist used to determine the fair value of these assets were appropriate because the firm did not evaluate whether the data and significant assumptions were appropriately applied under the applicable financial reporting framework. (AS 1105.A8c) Financial statement audit only | AS 1105.A8c | Significant risk |
| 10 | Certain Assets and Liabilities | The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not evaluate the reasonableness of certain significant assumptions developed by the issuer and the company's specialist that were used by the company's specialist to determine the fair value of these assets. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 11 | Certain Assets and Liabilities | The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm developed an expectation of certain other significant assumptions developed by the issuer and used by the company's specialist to evaluate their reasonableness. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not (i) perform procedures to demonstrate that it had a reasonable basis for a component of the assumptions and (ii) did not evaluate the significant differences between its expectations and the assumptions. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 12 | Certain Assets and Liabilities | The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: · The firm did not sufficiently evaluate the reasonableness of another significant assumption used by the company's specialist because it limited its procedures to a comparison to a similar assumption used by the issuer in the prior year. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 13 | Certain Assets and Liabilities | The following deficiency was identified related to certain other assets: · The firm did not sufficiently test the existence and fair value of certain assets because it limited its testing to determining that certain subsequent payments were received. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 14 | Certain Assets and Liabilities | The following deficiency was identified related to certain other assets: · The firm did not perform any procedures to test the existence and fair value of certain other assets. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 15 | Certain Assets and Liabilities | The following deficiency was identified related to certain other assets: · The firm did not perform any procedures to evaluate the completeness of certain other assets including evaluating contrary evidence. (AS 2301.08 and .11; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2810.3 | Significant risk |
| 16 | Certain Assets and Liabilities | The following deficiency was identified related to certain other assets: · The firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption for one of these assets because it did not evaluate the significant difference between this assumption and a related significant assumption used by the issuer in another estimate tested. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 17 | Certain Assets and Liabilities | The following deficiency was identified related to certain liabilities: · The firm did not perform any procedures to test the completeness and fair value of certain liabilities. (AS 2301.08 and .11; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2301.11; AS 2501.7 | Significant risk |
| 18 | Certain Assets and Liabilities | The following deficiency was identified related to certain liabilities: · The firm did not perform procedures to test the fair value of certain other liabilities beyond obtaining and reading the valuation report prepared by the company's specialist. Further the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A10; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9; AS 2501.7 | Significant risk |
| 19 | Certain Assets and Liabilities | The following deficiency was identified related to certain liabilities: · The firm did not perform sufficient procedures to test the completeness and valuation of certain other liabilities because it limited its procedures to cut-off testing. Further the firm inappropriately projected the results of its cut-off testing including misstatements identified to the entire balance of those liabilities. (AS 1105.27; AS 2301.08 and .11) Financial statement audit only | AS 1105.27; AS 2301.8; AS 2301.11 | Significant risk |
| 20 | Certain Assets and Liabilities | The following deficiency was identified related to certain liabilities: · The firm did not perform procedures beyond inquiry to demonstrate that it had a reasonable basis for an assumption it derived and used in developing its independent expectation of the fair value of another liability. (AS 2501.22) Financial statement audit only | AS 2501.22 | Significant risk |
| 21 | Certain Assets and Liabilities | The following deficiency was identified related to certain liabilities: · The firm did not perform any procedures to test or in the alternative identify and test controls over the accuracy and completeness of data it used to develop its independent expectation. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 22 | Certain Assets and Liabilities | The firm did not identify and evaluate departures from GAAP related to the issuer's omission of or inaccurate disclosures regarding certain assets and liabilities. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Certain Assets | The firm did not perform any procedures to demonstrate that it had a reasonable basis for assumptions it derived and used to develop an independent expectation of an estimate related to certain assets. (AS 2501.22) Financial statement audit only | AS 2501.22 | |
| 2 | Certain Assets | The firm did not perform any procedures to test or identify and test controls over the accuracy of certain reports it used to develop this independent expectation. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 3 | Journal Entries | The firm identified journal entries that met certain fraud criteria but did not examine the underlying support for the entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |