- Inspection year
- 2025
- Report date
- 25-Sep-2025
- PCAOB release
- 104-2025-151
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 33%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (5)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Related Party Transactions | The firm did not perform substantive procedures beyond inquiry and obtaining and reading an issuer-prepared memorandum to evaluate whether the issuer appropriately accounted for certain aspects of a related party transaction in conformity with GAAP. (AS 2410.17) Financial statement audit only | AS 2410.17 | |
| 2 | Related Party Transactions | The issuer engaged an external valuation specialist to determine the fair value of this related party transaction. The firm's approach to substantively testing the fair value of this transaction was to test the issuer's process. The firm did not evaluate the relevance and reliability of certain data from sources external to the issuer that the company's specialist used to develop certain significant assumptions. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | |
| 3 | Related Party Transactions | The issuer engaged an external valuation specialist to determine the fair value of this related party transaction. The firm's approach to substantively testing the fair value of this transaction was to test the issuer's process. The firm did not perform procedures beyond inquiry to evaluate the reasonableness of the significant assumptions developed by the company's specialist. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | |
| 4 | Significant Accounts | The firm used positive confirmation requests to test a significant account. The firm did not maintain control of the confirmation requests and responses through direct communication with the intended recipients of the confirmation requests. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 5 | Significant Accounts | The firm did not consider performing procedures to address the risks associated with electronic responses such as verifying the source and contents of the confirmation responses. (AS 2310.29) Financial statement audit only | AS 2310.29 |