- Inspection year
- 2024
- Report date
- 28-Apr-2025
- PCAOB release
- 104-2025-081
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 13
- Part I.B deficiencies
- 9
- Report
- View PDF ↗
Deficiencies (13)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A10 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Deferred Revenue | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm's approach to testing certain revenue included reliance on controls. The firm did not identify and test controls over the accuracy and completeness of system reports that the issuer used in the operation of its controls that the firm selected for testing. (AS 2301.16) Financial statement audit only | AS 2301.16 | |
| 2 | Deferred Revenue | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm's approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described 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 | |
| 3 | Deferred Revenue | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not perform any procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 4 | Deferred Revenue | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not perform any procedures to test or identify and test controls over as discussed above the accuracy and completeness of a report used by the firm to test certain deferred revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 5 | Accounts Receivable | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm selected a sample of invoices to test accounts receivable. The firm did not perform sufficient procedures to test certain invoices because the firm limited its procedures to reviewing the invoice and inquiry of management. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Accounts Receivable | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not perform any procedures to test or identify and test controls over the accuracy and completeness of certain reports it used to test the allowance for doubtful accounts. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 7 | Business Combinations | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: · The firm did not test the existence completeness accuracy and fair value of the tangible assets acquired and liabilities assumed as of the acquisition date. (AS 2301.08; AS 2501.07) Financial statement audit only | AS 2301.8; AS 2501.7 | |
| 8 | Business Combinations | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: · The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration beyond obtaining the draft report from the company's specialist. Further the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07) Financial statement audit only | AS 1105.A1; AS 1105.A10; AS 1105.A2; AS 1105.A3; AS 1105.A4; AS 1105.A5; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9; AS 2501.7 | |
| 9 | Business Combinations | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: · The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure related to this business combination required by FASB ASC Topic 805 Business Combinations. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 10 | Journal Entries | The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed. The firm did not consider fraud characteristics in identifying and selecting journal entries and other adjustments for testing. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a business. The firm did not identify and evaluate a departure from GAAP related to the issuer's valuation of the acquiree's investment in the acquirer. (AS 2810.30) Unrelated to our review the issuer reevaluated its accounting for this acquisition and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm revised and reissued its report on the financial statements. Financial statement audit only | AS 2810.30 | Significant risk |
| 2 | Business Combinations | The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure related to this business combination required by FASB ASC Topic 805. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | Significant risk |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investments | The issuer performed a qualitative assessment of impairment of an investment and concluded that it was not impaired. The firm did not perform procedures beyond inquiry to test the accuracy of certain issuer-produced information included in the assessment to support the issuer's conclusion. (AS 1105.10) Financial statement audit only | AS 1105.10 |