- Inspection year
- 2024
- Report date
- 24-Jul-2025
- PCAOB release
- 104-2025-130
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (6)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Information Technology General Controls | The issuer used a service organization to process and record transactions to its general ledger. The firm obtained the service auditor's report for this service organization and identified for testing certain complementary user entity controls (CUECs). The firm identified control deficiencies related to certain of these CUECs. The firm did not evaluate the effect of these deficiencies on the issuer's ability to meet control objectives stated in the service auditor's report. (AS 2201.62 and .B22) Both financial statement and ICFR audits | AS 2201.62; AS 2201.B22 | |
| 2 | Revenue | As a result of the deficiencies in ITGC testing discussed above the firm did not sufficiently test whether the information technology (IT) automated application controls and the IT-dependent manual controls it selected for testing over revenue were effective as each control was dependent on the effectiveness of ITGCs. (AS 2201.46) Both financial statement and ICFR audits | AS 2201.46 | |
| 3 | Revenue | The issuer used a service organization to provide management reporting related to certain revenue. The firm did not perform any procedures to evaluate whether the issuer implemented the appropriate CUECs as described in the service auditor's report. (AS 2201.39 and .B22) Both financial statement and ICFR audits | AS 2201.39; AS 2201.B22 | |
| 4 | Revenue | In addition the firm relied upon a report produced by the service organization in its substantive procedures over certain revenue but did not test or identify and test any controls over (as discussed above) the accuracy and completeness of the report. (AS 2301.08 and .13) Both financial statement and ICFR audits | AS 2301.8; AS 2301.13 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | For certain revenue items selected for testing the firm did not evaluate whether the performance obligation was satisfied before revenue was recognized. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not test the issuer's disclosure of revenue by type beyond tracing the amounts to an issuer-prepared schedule. (AS 2301.08) Financial statement audit only | AS 2301.8 |