- Inspection year
- 2025
- Report date
- 10-Nov-2025
- PCAOB release
- 104-2026-007
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 5
- Part I.B deficiencies
- 4
- 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 A3 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Investments | The issuer recorded an investment at fair value that was determined in part based on assumptions that were developed by the company's specialists. The firm's approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company's specialists. The following deficiency was identified: • The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company's specialists beyond reading the company's specialist's valuation reports inspecting certain contracts and inquiring of management. Further the firm did not perform any procedures beyond inquiring of management with respect to its use of this company's specialist's work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16) 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 2501.16 | Significant risk |
| 2 | Investments | The issuer recorded an investment at fair value that was determined in part based on assumptions that were developed by the company's specialists. The firm's approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company's specialists. The following deficiency was identified: • The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company's specialists beyond reading and comparing the two company's specialists' valuation reports inspecting certain contracts and inquiring of management. Further the firm did not perform procedures to evaluate the work of the company's specialists beyond inquiries of the company's specialists and certain comparisons to issuer documentation. (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 | Significant risk |
| 3 | Investments | The firm did not sufficiently evaluate whether the issuer's accounting for this investment was appropriate because the firm did not determine how the issuer evaluated all relevant factors including certain contrary evidence related to one of the factors. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 | Significant risk |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a business and determined the fair value of certain acquired intangible assets using forecasted revenue which the firm identified as a significant assumption. The firm did not evaluate the reliability of certain historical revenue data from the acquiree that was used to develop these revenue forecasts. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | |
| 2 | Goodwill and Intangible Assets | The firm did not perform procedures beyond inquiry to evaluate the issuer's conclusions that quantitative impairment assessments for certain goodwill and intangible assets were not necessary including how the issuer evaluated certain relevant events or changes in circumstances of which the firm was aware that indicated that these assets may not be recoverable. (AS 2301.08; AS 2810.03) Financial statement audit only | AS 2301.8; AS 2810.3 |