- Inspection year
- 2024
- Report date
- 24-Jul-2025
- PCAOB release
- 104-2025-128
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 3
- Part I.B deficiencies
- 3
- Report
- View PDF ↗
Deficiencies (3)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. The firm's approach to test ACL was to test management's process. The issuer engaged a specialist to prepare a model validation report over the issuer's model to estimate the quantitative component of the ACL. The firm did not test or test controls over the accuracy and completeness of the company-produced data used by the company's specialist in its model validation report. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 2 | Allowance for Credit/Loan Losses | The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below. To determine the qualitative component of the ACL the issuer identified one or more data inputs relevant to each identified qualitative factor and established quantitative ranges for these inputs corresponding with the risk level expected to be assigned to each factor and loan pool. The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions related to the assessed risk levels and related basis points applied to the collateral factor reserves. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investment Securities | The issuer utilized a service organization to process its securities transactions. The issuer used an impairment analysis prepared by the service organization to determine whether certain investment securities had credit related impairments. The firm did not perform procedures to test the accuracy of credit ratings used by the service organization in developing the issuer's impairment analysis for these investment securities. (AS 2301.08) Financial statement audit only | AS 2301.8 |