- Inspection year
- 2024
- Report date
- 24-Jul-2025
- PCAOB release
- 104-2025-125
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 12
- Part I.B deficiencies
- 5
- Report
- View PDF ↗
Deficiencies (12)
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 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing a control that consisted of a review of impairment indicators for goodwill. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 2 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not identify and test any controls over the issuer's identification of reporting units in accordance with FASB ASC Topic 350 Intangibles – Goodwill and Other. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 3 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: · The firm did not perform any procedures to evaluate the relevance and reliability of certain data from external sources used by the company's specialist to develop a significant assumption. (AS 1105.A8a) Both financial statement and ICFR audits | AS 1105.A8a | Significant risk |
| 4 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: · The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist beyond inquiry of the company's specialist. (AS 1105.A8b) Both financial statement and ICFR audits | AS 1105.A8b | Significant risk |
| 5 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: · The firm did not perform procedures to evaluate the reasonableness of another significant assumption developed by the company's specialist beyond performing a sensitivity analysis. (AS 1105.A8b) Both financial statement and ICFR audits | AS 1105.A8b | Significant risk |
| 6 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not sufficiently evaluate whether the method used by the issuer to develop the fair value of its reporting units was in conformity with FASB ASC Topic 350 because the firm did not perform procedures to evaluate the appropriateness of the issuer's identification of its reporting units. (AS 2501.10) Both financial statement and ICFR audits | AS 2501.10 | Significant risk |
| 7 | Goodwill | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm did not perform procedures beyond reviewing the issuer's fourth quarter triggering event assessment to evaluate whether a quantitative assessment was required during the fourth quarter including consideration of contrary evidence included in the firm's audit work papers. (AS 2301.08 and .11; AS 2810.03) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11; AS 2810.3 | Significant risk |
| 8 | Going Concern | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing a control that consisted of management's review of the issuer's ability to continue as a going concern for a reasonable period of time. The firm did not evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 9 | Going Concern | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. During the year under audit the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer's ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management's plans as disclosed in the footnotes because it did not (1) assess the likelihood that the issuer could obtain additional funding beyond inquiries of management and review of historical funding and (2) sufficiently test the prospective financial information which was significant to overcoming the adverse conditions and events including consideration of contrary evidence included in the firm's audit work papers. (AS 2415.03 .08 and .09; AS 2810.03) Both financial statement and ICFR audits | AS 2415.3; AS 2415.8; AS 2415.9; AS 2810.3 | Significant risk |
| 10 | Revenue and Accounts Receivable | The firm's post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The firm selected for testing certain controls over the reconciliation and/or review of revenue and accounts receivable. The firm did not evaluate the review procedures that the control owners performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any procedures to test the relevance and reliability of certain data obtained from an external vendor used in its substantive testing of revenue. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Cash and Cash Equivalents | The firm did not perform any procedures to test the existence of certain cash balances. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 |