- Inspection year
- 2024
- Report date
- 25-Sep-2025
- PCAOB release
- 104-2025-159
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 15
- Part I.B deficiencies
- 9
- Report
- View PDF ↗
Deficiencies (15)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A12 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue and Related Accounts | The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts which were measured based on estimates the following deficiency was identified: • The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of certain of this revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue and Related Accounts | The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts which were measured based on estimates the following deficiency was identified: • The firm selected a sample of transactions to test the measurement of this revenue. The firm did not sufficiently evaluate whether data was appropriately used and significant assumptions were appropriately applied in measuring this revenue because it did not compare the amount of revenue it calculated for the selected transactions to the amount of revenue recorded by the issuer. (AS 2501.10) Financial statement audit only | AS 2501.10 | |
| 3 | Revenue and Related Accounts | The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts which were measured based on estimates the following deficiency was identified: • The firm did not evaluate the reasonableness of certain significant assumptions that the issuer used to estimate this type of revenue. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 4 | Revenue and Related Accounts | The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts which were measured based on estimates the following deficiency was identified: • The firm did not evaluate the reasonableness of another significant assumption that the issuer used to estimate a related account. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 5 | Revenue and Related Accounts | For a second type of revenue the following deficiency was identified: • For certain revenue of this type the firm did not perform sufficient procedures to evaluate the issuer's identification of performance obligations because it did not evaluate (1) the issuer's basis for concluding that the goods and services or bundles thereof represented a single or multiple performance obligation(s) and (2) whether the issuer was acting as the principal for the transaction rather than an agent. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 6 | Revenue and Related Accounts | For a second type of revenue the following deficiency was identified: • The firm did not perform sufficient procedures to test when the issuer recognized revenue because it did not perform procedures to evaluate whether (1) the issuer had satisfied the performance obligation(s) at the time revenue was recognized and (2) the revenue for each performance obligation should have been recognized at a point-in-time or over time. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 7 | Revenue and Related Accounts | For a second type of revenue the following deficiency was identified: • The firm did not perform sufficient procedures to evaluate the determination of the transaction prices because when concluding that variable consideration did not exist the firm did not evaluate aspects of the revenue transactions that indicated the presence of variable consideration. (AS 2301.08 and .13; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2301.13; AS 2810.3 | |
| 8 | Revenue and Related Accounts | For a second type of revenue the following deficiency was identified: • The firm did not test or identify and test controls over the completeness and accuracy of issuer-produced data the issuer used to develop significant assumptions used in measuring variable consideration for certain revenue of this type. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 9 | Revenue and Related Accounts | For a second type of revenue the following deficiency was identified: • The firm did not evaluate the reasonableness of a significant assumption the issuer used to measure this revenue. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 10 | Revenue and Related Accounts | For a third type of revenue the firm relied on certain controls to reduce the nature timing and extent of its substantive procedures to test revenue. The following deficiency was identified: • The firm did not identify and test controls that addressed the completeness and accuracy of revenue transaction details used in the operation of an information-technology automated control selected for testing. (AS 2301.16) Financial statement audit only | AS 2301.16 | |
| 11 | Revenue and Related Accounts | For a third type of revenue the firm relied on certain controls to reduce the nature timing and extent of its substantive procedures to test revenue. The following deficiency was identified: • The firm did not test or identify and test any controls over the completeness and accuracy of certain system-generated data that was used to develop a significant assumption the issuer used to recognize revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 12 | Revenue and Related Accounts | Related to multiple types of revenue the firm did not identify and evaluate the issuer's omission of certain disclosures required by FASB Topic 606 Revenue from Contracts with Customers. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 |
Issuer B3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Long-Lived Assets | The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets beyond obtaining a summary of the company's specialist's valuation memorandum. Further the firm did not perform any procedures with respect to its use of the work of the company's specialist as audit evidence. (AS 1105.A1-.A10; AS 2501.07) Financial statement audit only | AS 1105.A1; AS 1105.A10; AS 1105.A2; AS 1105.A3; AS 1105.A4; AS 1105.A5; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9; AS 2501.7 | Significant risk |
| 2 | Accounts Receivable | The firm's approach for substantively testing the allowance for doubtful accounts was to test the issuer's process. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the firm had a reasonable basis for the significant assumptions related to the expected credit loss rate the issuer used to estimate its allowance for doubtful accounts. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 3 | Accounts Receivable | The firm's approach for substantively testing the allowance for doubtful accounts was to test the issuer's process. The following deficiency was identified: • The firm did not perform procedures to test or test any controls over the accuracy and completeness of certain issuer-produced data the issuer used to develop the significant assumptions. (AS 1105.10) Financial statement audit only | AS 1105.10 | Significant risk |