- Inspection year
- 2025
- Report date
- 23-Oct-2025
- PCAOB release
- 104-2025-167
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 6
- Part I.B deficiencies
- 2
- 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 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. As a result of the deficiencies the firm's testing of this IT-dependent manual control was not sufficient. (AS 2201.46) ICFR audit only | AS 2201.46 | Significant risk |
| 2 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm selected for testing a review control over user access. The firm did not evaluate the specific procedures that the control owners performed to determine whether the granted access continued to be appropriate. (AS 2201.42 and .44) ICFR audit only | AS 2201.42; AS 2201.44 | Significant risk |
| 3 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm selected for testing a change management control. The firm did not test or test any controls over the completeness of the change management population used by the firm to select items for testing the change management control. (AS 1105.10) ICFR audit only | AS 1105.10 | Significant risk |
| 4 | Allowance for Credit/Loan Losses | The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. · The firm did not identify and test any controls over the accuracy and completeness of the reports generated from this IT system used in the performance of the control. (AS 2201.39) ICFR audit only | AS 2201.39 | Significant risk |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer's loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans. The firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans beyond obtaining and reading the valuation report prepared by the company's specialist. Further the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.16) Financial statement audit only | AS 1105.A10; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9; AS 2501.16 | |
| 2 | Allowance for Credit/Loan Losses | The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer's loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to the estimates for percentages of completion for the construction projects and selling cost adjustments. (AS 2501.16) Financial statement audit only | AS 2501.16 |