- Inspection year
- 2023
- Report date
- 22-May-2025
- PCAOB release
- 104-2025-099
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 26
- Part I.B deficiencies
- 19
- Report
- View PDF ↗
Deficiencies (26)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A16 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · The firm did not perform procedures to evaluate the relevance and reliability of certain external data it used to test realized gains/losses beyond documenting the methodology used by the external party to price the digital assets. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · For the items selected related to the first type of transaction the firm did not sufficiently test the quantity of digital assets transferred because its procedures were limited to testing the quantity of digital assets received which were a different type of asset than the assets transferred. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · For certain items selected related to the second type of transaction the firm did not evaluate the appropriateness of the issuer's recognition of realized gains/losses. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 4 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · For certain items selected related to the second type of transaction the firm did not evaluate the reliability of certain external data used as audit evidence in testing certain of these transactions. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 5 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · The firm did not perform any procedures to test the remaining population of realized gains/losses on the sale of digital assets. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Digital Assets | The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm's substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified: · The firm did not identify and evaluate departures from the applicable accounting standards related to the presentation and disclosure of digital asset transactions. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 7 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · The firm did not perform any procedures to test the impairment of certain long-lived assets. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |
| 8 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · For certain other long-lived assets the firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the impairment calculations. Specifically it did not evaluate significant differences between the assumptions and (i) similar significant assumptions used by the issuer in another estimate (ii) industry information and/or (iii) information from an external source. Further the firm did not perform procedures to evaluate the relevance and/or reliability of the industry information and information from the external source. (AS 1105.04 and .06; AS 2501.16) Financial statement audit only | AS 1105.4; AS 1105.6; AS 2501.16 | Significant risk |
| 9 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · The firm did not perform any procedures to test another portion of an impairment including whether it was appropriate to record the impairment. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 10 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the relevance and reliability of certain information from external sources that the issuer used in an impairment calculation. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 11 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · The issuer engaged an external specialist to estimate the impairment for certain other long-lived assets. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions used by the company's specialist. (AS 1105.A8b; AS 2501.16) Financial statement audit only | AS 1105.A8b; AS 2501.16 | Significant risk |
| 12 | Long-Lived Assets | The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified: · The issuer engaged an external specialist to estimate the impairment for certain other long-lived assets. The firm did not perform any procedures to (i) test the accuracy and completeness of issuer-produced information and (ii) evaluate the relevance and reliability of information from external sources that were both used by the company's specialist. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 13 | Long-Lived Assets | The firm did not perform sufficient procedures to evaluate the useful lives for certain long-lived assets because it did not evaluate the significant differences between this assumption the significant assumption used by the issuer in an impairment calculation and industry information. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 14 | Long-Lived Assets | The firm did not perform procedures to test or identify and test any controls over the accuracy of certain data included in certain system-generated reports that it used in its substantive procedures over depreciation expense. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 15 | Revenue | The issuer earned revenue through cryptocurrency mining. The firm did not perform any procedures to evaluate (1) the terms and conditions of the issuer's arrangements with its mining pool operators and (2) the method used by the mining pool operators to allocate consideration to the issuer. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 16 | Revenue | The firm did not perform procedures to evaluate the relevance and/or reliability of certain external data it used to substantively test this revenue beyond documenting the methodology used by one source to price crypto assets. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature timing and extent of its substantive procedures to test this significant account. The following deficiencies were identified: · The firm selected for testing controls over the review of certain aspects of this significant account. The firm did not perform procedures to evaluate the specific review procedures that the control owners performed to (i) evaluate the reasonableness of the assumptions (ii) evaluate whether data was appropriately used in determining the estimate and (iii) test the accuracy and completeness of certain information used in the performance of these controls. (AS 2301.19 and .21) Financial statement audit only | AS 2301.19; AS 2301.21 | |
| 2 | Significant Accounts | The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature timing and extent of its substantive procedures to test this significant account. The following deficiencies were identified: · The firm selected for testing certain other controls over this significant account. The firm did not perform sufficient procedures to test the design and operating effectiveness of these controls because it did not obtain evidence that these controls were designed effectively and operating effectively during the entire period of reliance. (AS 2301.16) Financial statement audit only | AS 2301.16 | |
| 3 | Significant Accounts | The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature timing and extent of its substantive procedures to test this significant account. The following deficiencies were identified: · The firm did not perform substantive procedures to test this significant account beyond performing a retrospective analytical review testing certain data used to determine the estimate and comparing activity reports for this significant account to the general ledger. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Goodwill and Intangible Assets | The issuer reported goodwill and intangible assets. The firm did not perform procedures beyond (i) obtaining and reading the issuer's analyses and/or press releases (ii) performing sensitivity analyses and (iii) performing certain tests of mathematical accuracy to test certain of the issuer's impairment analyses including consideration of contrary evidence in the work papers for one of the analyses. (AS 2501.07; AS 2810.03) Financial statement audit only | AS 2501.7; AS 2810.3 | |
| 5 | Journal Entries | The firm identified certain fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not examine the underlying support for the journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer C5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform sufficient procedures to evaluate the terms and conditions in the issuer's contracts for certain types of revenue to determine their effect on the recognition of this revenue because it limited its procedures to evaluating the terms and conditions of one contract for certain of these types of revenue. (AS 2301.08 .11 and .13) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Revenue | The firm did not perform substantive procedures to test the presentation of certain types of revenue. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
| 3 | Revenue | The firm did not perform procedures to evaluate whether certain other revenue was recognized in conformity with the applicable accounting standard beyond reading the issuer's revenue recognition policy. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
| 4 | Revenue | The firm did not perform any procedures to evaluate the relevance and reliability of certain information it obtained from external sources and used in its substantive procedures. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 5 | Journal Entries | The firm identified certain fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not examine the underlying support for the journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |