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Shandong Haoxin Certified Public Accountants Co., Ltd
China · Triennially Inspected
- Inspection year
- 2024
- Report date
- 24-Jul-2025
- PCAOB release
- 104-2025-129
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 14
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (14)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm's approach for substantively testing the impairment analyses was to test the issuer's process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: · The firm did not test whether the issuer compared the fair value of each asset group to the carrying value of each asset group in determining that none of the asset groups were impaired. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 2 | Long-Lived Assets | The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm's approach for substantively testing the impairment analyses was to test the issuer's process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: · The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures beyond reviewing sensitivity analyses prepared by the company's specialist to evaluate the reasonableness of a significant assumption developed by the company's specialist (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience (4) evaluate the relevance and reliability of certain external data the company's specialist used to develop these significant assumptions and (5) test the accuracy and completeness of the issuer-produced information used by the company's specialist and perform additional procedures or request the specialist perform additional procedures to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16) Financial statement audit only | AS 1105.A8a; AS 1105.A8b; AS 1201.C6; AS 1201.C7; AS 2501.16 | |
| 3 | Long-Lived Assets | The issuer capitalized expenditures for a long-lived asset. The firm selected certain additions for testing but did not perform any procedures to determine whether these additions qualified for capitalization including for one selection evaluating contradictory evidence in the work papers. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 | |
| 4 | Revenue | To test revenue the firm selected a sample of transactions. The following deficiency was identified: · The firm did not perform any procedures to test or test any controls over the completeness of the issuer-prepared reports from which it selected transactions for testing. (AS 1105.10). Financial statement audit only | AS 1105.10 | |
| 5 | Revenue | To test revenue the firm selected a sample of transactions. The following deficiency was identified: · The firm did not perform sufficient procedures to evaluate whether the issuer had satisfied its performance obligations prior to recognizing certain revenue because it limited its procedures to obtaining issuer-produced documents and/or cash receipts for a selection of transactions. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer B6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Deferred Revenue | The firm's substantive procedures to test revenue and deferred revenue included testing a selection of transactions. The firm did not perform procedures beyond obtaining issuer-produced information to test these revenue transactions. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue and Deferred Revenue | The firm did not perform any procedures to test or test any controls over the completeness of the population of items from which it selected transactions for testing. (AS 1105.10). Financial statement audit only | AS 1105.10 | |
| 3 | Investment Securities | The issuer reported certain investment securities at fair value. The firm did not perform substantive procedures to test the fair value of these investments beyond comparing the recorded fair value to the record keepers' reports and inquiring of the record keepers. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 4 | Investment Securities | The firm did not perform any substantive procedures to evaluate the appropriateness of the issuer's categorization of these securities within the fair value hierarchy set forth in FASB ASC Topic 820 Fair Value Measurement. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Certain Transactions | The firm did not perform substantive procedures to evaluate whether the issuer's presentation and disclosure of certain transactions was in conformity with FASB ASC Topic 205 Presentation of Financial Statements beyond obtaining and reading the issuer's analysis which did not support that the presentation and disclosure of these transactions was in conformity with FASB ASC Topic 205. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Variable Interest Entities | The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and its shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs including the validity and enforceability of contractual arrangements with the VIEs and its shareholders and the firm used the work of the company's specialist as audit evidence. The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialist and whether the specialist's findings support or contradict the issuer's rights and obligations related to the consolidation of the VIEs because it did not (1) evaluate that the legal opinion was approximately six months old (2) evaluate the nature of the limitations described in the legal opinion and (3) perform additional procedures to address these matters. (AS 1105.A9 and .A10) Financial statement audit only | AS 1105.A10; AS 1105.A9 | |
| 2 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |