- Inspection year
- 2025
- Report date
- 23-Oct-2025
- PCAOB release
- 104-2025-171
- 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
- 3
- 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 A5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Accounts | The issuer used various assumptions to estimate the value of a significant account. The firm's approach for substantively testing the value of this account was to test the issuer's process and develop expectations of certain significant assumptions which it compared to the respective assumptions used by the issuer. The following deficiencies were identified: · The firm did not identify and evaluate a departure from GAAP related to the method used by the issuer to estimate the value of the significant account which was not in conformity with the applicable financial reporting framework. (AS 2501.10; AS 2810.30 and .31) Financial statement audit only | AS 2501.10; AS 2810.30; AS 2810.31 | |
| 2 | Significant Accounts | The issuer used various assumptions to estimate the value of a significant account. The firm's approach for substantively testing the value of this account was to test the issuer's process and develop expectations of certain significant assumptions which it compared to the respective assumptions used by the issuer. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 3 | Significant Accounts | The issuer used various assumptions to estimate the value of a significant account. The firm's approach for substantively testing the value of this account was to test the issuer's process and develop expectations of certain significant assumptions which it compared to the respective assumptions used by the issuer. The following deficiencies were identified: · The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it did not evaluate significant differences between its expectations and the assumptions. Further for one significant assumption the firm did not demonstrate it had a reasonable basis for its expectation of the assumption. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 4 | Significant Accounts | The issuer used various assumptions to estimate the value of a significant account. The firm's approach for substantively testing the value of this account was to test the issuer's process and develop expectations of certain significant assumptions which it compared to the respective assumptions used by the issuer. The following deficiencies were identified: · The firm did not perform procedures to evaluate the reasonableness of another significant assumption including taking into account the issuer's intent and ability to carry out the assumption. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 | |
| 5 | Significant Accounts | The issuer used various assumptions to estimate the value of a significant account. The firm's approach for substantively testing the value of this account was to test the issuer's process and develop expectations of certain significant assumptions which it compared to the respective assumptions used by the issuer. The following deficiencies were identified: · The firm did not perform any procedures to evaluate the relevance and/or reliability of certain external data and information used in its substantive testing of the significant assumptions. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 |
Issuer B1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Related Party Transactions | The firm used a positive confirmation request to test a related party transaction. The firm did not maintain control over the confirmation request and response through direct communication with the intended recipient of the confirmation request because the issuer sent and received the request. (AS 2310.28) [This citation refers to AS 2310 The Confirmation Process which was in effect for this audit. This standard was replaced by AS 2310 The Auditor's Use of Confirmation which became effective for audits of financial statements for fiscal years ending on or after June 15 2025.] Financial statement audit only | AS 2310.28 |