- Inspection year
- 2024
- Report date
- 26-Jun-2025
- PCAOB release
- 104-2025-111
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 8
- Part I.B deficiencies
- 2
- Report
- View PDF ↗
Deficiencies (8)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: · The firm selected for testing a control over one revenue stream that consisted of the issuer's reconciliation of revenue data between the billing system and general ledger system. The firm did not identify and test any controls over the accuracy and completeness of the information used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 2 | Revenue | The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: · The firm selected for testing other controls over this revenue stream that consisted of the issuer's reconciliation of (1) revenue data between the general ledger system and one of its financial reporting systems and (2) revenue data among certain financial reporting systems. The firm did not sufficiently test the operating effectiveness of these controls because it did not evaluate how identified deficiencies in certain systems interface controls between these systems could impact the operating effectiveness of the revenue reconciliation controls. (AS 2201.44) Both financial statement and ICFR audits | AS 2201.44 | |
| 3 | Revenue | The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: · The firm selected for testing a control over another revenue stream that consisted of the issuer's (1) review of customer contracts in excess of a specified threshold and (2) determination as to whether the revenue from the selected contracts was recognized in conformity with the relevant accounting standard. The firm did not evaluate whether the threshold used in the control could effectively prevent or detect a material misstatement. (AS 2201.42) Both financial statement and ICFR audits | AS 2201.42 | |
| 4 | Revenue | The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: · The firm's substantive procedures to test certain revenue included performing substantive analytical procedures. The expectations the firm used were not sufficiently precise to identify differences that could be potential material misstatements individually or in the aggregate because the firm did not disaggregate the data used to develop the expectations to address important factors that have an effect on the recognition of the revenue. (AS 2305.17) Both financial statement and ICFR audits | AS 2305.17 | |
| 5 | Revenue | The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: · The firm did not perform substantive procedures to test certain other revenue beyond (1) examining customer invoices produced by the issuer for a sample of revenue transactions (2) verifying the mathematical accuracy of those invoices and reconciling the total invoiced amounts to the general ledger and (3) obtaining customer contracts for the selected revenue transactions and summarizing certain terms of those contracts. (AS 2301.08) Both financial statement and ICFR audits | AS 2301.8 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Inventory | The firm did not perform substantive procedures to (1) test the existence and cost of certain inventory and (2) evaluate whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Inventory | The firm did not perform substantive procedures to evaluate the reasonableness of the allowance for slow moving inventory. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 3 | Journal Entries | The firm identified fraud criteria for purposes of identifying and selecting journal entries for testing and communicated to the principal auditor that its audit procedures would include an examination of all journal entries and other adjustments that met these criteria. In identifying and selecting journal entries that met the criteria the firm did not perform sufficient procedures to test those journal entries because it excluded certain journal entries from testing without having an appropriate rationale for their exclusion. (AS 2401.61) Financial statement audit only | AS 2401.61 |