- Inspection year
- 2024
- Report date
- 11-Sep-2025
- PCAOB release
- 104-2025-141
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 29
- Part I.B deficiencies
- 24
- Report
- View PDF ↗
Deficiencies (29)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A15 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Related Party Transactions | The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties including evaluating whether an interest-free loan agreement was a transaction with a related party. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 2 | Related Party Transactions | The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not perform procedures to test related party transactions and balances including the presentation of the transactions in the statement of cash flows beyond sending confirmation requests for the balances and inspecting evidence of cash receipts and payments. Further for certain confirmations that were not returned or that were returned without a response the firm did not perform alternative procedures. (AS 2310.31; AS 2410.12) Financial statement audit only | AS 2310.31; AS 2410.12 | |
| 3 | Related Party Transactions | The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not identify and evaluate the issuer's omission of disclosures related to certain related party transactions required by FASB ASC Topic 850 Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31) Financial statement audit only | AS 2410.17; AS 2810.30; AS 2810.31 | |
| 4 | Related Party Transactions | The issuer entered into various transactions with related parties. The following deficiency was identified: • The firm did not take any action in response to information regarding certain related party transactions that indicated possible illegal acts. (AS 2405.07 and .10) Financial statement audit only | AS 2405.7; AS 2405.10 | |
| 5 | Significant Transactions | During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not perform substantive procedures to test whether the issuer's accounting for and presentation of these transactions was in accordance with GAAP. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 6 | Significant Transactions | During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not perform substantive procedures to test the fair value of certain aspects of these transactions beyond obtaining and testing the mathematical accuracy of the issuer's estimates. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 7 | Significant Transactions | During the year the issuer entered into certain significant transactions. The following deficiency was identified: • The firm did not identify and evaluate the issuer's omission of certain disclosures related to these transactions required by FASB ASC Topic 820 Fair Value Measurement. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 8 | Revenue | The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 9 | Revenue | For certain other revenue the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized beyond obtaining issuer Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 10 | Accounts Receivable | The firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable. For the confirmation requests that were not returned or that were returned without a response the firm did not perform alternative procedures. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 11 | Accounts Receivable | The firm did not perform procedures to examine material adjustments made to accounts receivable during the course of preparing the financial statements. (AS 2301.41) Financial statement audit only | AS 2301.41 | |
| 12 | Accounts Receivable | The firm did not perform any procedures to test the allowance for doubtful accounts. (AS 2501.07) Financial statement audit only | AS 2501.7 | |
| 13 | Cash | The firm did not identify and evaluate that the issuer did not present an aspect of the statement of cash flows in conformity with FASB ASC Topic 230 Statement of Cash Flows. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 14 | Cash | The firm did not perform any substantive procedures to test a disclosure related to cash. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 15 | Journal Entries | The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer B10 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606 Revenue from Contracts with Customers. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Significant Accounts | The firm did not perform any substantive procedures to evaluate the appropriateness of the issuer's accounting for an aspect of this significant account. (AS 2301.08) Financial statement audit only | AS 2301.8 | Significant risk |
| 3 | Significant Accounts | The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform procedures to evaluate the relevance and reliability of information from external sources that the issuer used to develop significant assumptions. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 4 | Significant Accounts | The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform any procedures to test or test any controls over the accuracy and completeness of issuer-produced information that the issuer used to develop significant assumptions. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |
| 5 | Significant Accounts | The issuer reported an estimate related to this significant account. The following deficiency was identified: • The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer beyond testing one input of one of these assumptions. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 6 | Significant Accounts | The firm did not evaluate whether certain aspects of the issuer's disclosures related to this significant account were accurate including consideration of contradictory evidence included in the workpapers. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 | Significant risk |
| 7 | Related Party Transactions | The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. (AS 2410.14) Financial statement audit only | AS 2410.14 | |
| 8 | Related Party Transactions | The firm did not perform procedures to test related party transactions and balances beyond confirming the transactions and inspecting evidence of certain cash receipts to and payments from related parties. (AS 2410.12) Financial statement audit only | AS 2410.12 | |
| 9 | Going Concern | The issuer did not include any disclosures related to its ability to continue as a going concern. Certain conditions and events existed that would indicate substantial doubt about the issuer's ability to continue as a going concern for a reasonable period of time. The firm did not perform any procedures to determine whether the issuer's lack of disclosures regarding its ability to continue as a going concern was in conformity with FASB ASC Topic 205 Presentation of Financial Statements. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 10 | Journal Entries | The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |
Issuer C4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The firm did not evaluate the completeness of the issuer's revenue disclosures required by FASB ASC Topic 606. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 3 | Significant Transactions | The firm did not perform substantive procedures to evaluate whether the issuer appropriately accounted for certain significant transactions in accordance with GAAP beyond reading the contractual agreements and inquiring of management. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 4 | Journal Entries | The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing without having an appropriate rationale. Further the firm did not examine the underlying support for the journal entries. (AS 2401.61) Financial statement audit only | AS 2401.61 |