- Inspection year
- 2025
- Report date
- 08-Dec-2025
- PCAOB release
- 104-2026-019
- Audits reviewed
- 2
- Audits w/ Part I.A deficiencies
- 1
- Part I.A deficiency rate
- 50%
- Part I.A deficiencies
- 11
- Part I.B deficiencies
- 4
- Report
- View PDF ↗
Deficiencies (11)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A11 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Allowance for Credit/Loan Losses | The issuer developed the ACL for loans collectively evaluated for impairment using various models that were maintained by a service organization. The firm obtained a service auditor's report for this service organization. The following deficiency was identified: • The firm did not identify and test any controls over the appropriateness of certain models that were not addressed by this service auditor's report. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 2 | Allowance for Credit/Loan Losses | The issuer developed the ACL for loans collectively evaluated for impairment using various models that were maintained by a service organization. The firm obtained a service auditor's report for this service organization. The following deficiency was identified: • The firm identified certain complementary user controls related to the issuer's validation and review of the outputs of the service organization's models that the service auditor's report described as necessary. The firm selected for testing a control to address the complementary user controls but did not identify that this control was not designed to satisfy the control objectives of the complementary user controls. (AS 2201.42 and .B22) Both financial statement and ICFR audits | AS 2201.42; AS 2201.B22 | Significant risk |
| 3 | Allowance for Credit/Loan Losses | The issuer developed the ACL for loans collectively evaluated for impairment using various models that were maintained by a service organization. The firm obtained a service auditor's report for this service organization. The following deficiency was identified: • The firm selected for testing a control that consisted of the issuer's review of the ACL. The firm did not identify and test any controls over the accuracy and completeness of a report produced by the service organization that was used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 4 | Allowance for Credit/Loan Losses | The issuer developed the ACL for loans collectively evaluated for impairment using various models that were maintained by a service organization. The firm obtained a service auditor's report for this service organization. The following deficiency was identified: • The firm selected for testing a control that included the issuer's review of certain ACL assumptions that the service organization used in its models. The firm did not perform procedures to evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 5 | Allowance for Credit/Loan Losses | The issuer developed the ACL for loans collectively evaluated for impairment using various models that were maintained by a service organization. The firm obtained a service auditor's report for this service organization. The following deficiency was identified: • The firm selected for testing a control that included the issuer's review of certain ACL assumptions that the service organization used in its models. The firm did not identify and test any controls over the review of an analysis that was prepared by a company specialist and used in the operation of this control. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 6 | Allowance for Credit/Loan Losses | The firm selected for testing certain controls over the review of changes to risk ratings credit quality monitoring collateral impairment analysis and loan write-offs. The firm did not perform procedures to evaluate the review procedures that the control owner performed including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | Significant risk |
| 7 | Allowance for Credit/Loan Losses | The firm did not identify and test any or test aspects of controls over the accuracy and/or completeness of the loan delinquency data and certain other loan data that the issuer used in the operation of controls over the ACL the firm selected for testing. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | Significant risk |
| 8 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ACL was to test the issuer's process and the firm used the work of company specialists to evaluate the appropriateness of certain of the models the issuer used to develop the ACL for loans collectively evaluated for impairment. The following deficiency was identified: • The firm used a report produced by the service organization in its substantive testing of the ACL but did not perform procedures to test or test any controls over the accuracy of this report. (AS 2301.08 and .11) Both financial statement and ICFR audits | AS 2301.8; AS 2301.11 | Significant risk |
| 9 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ACL was to test the issuer's process and the firm used the work of company specialists to evaluate the appropriateness of certain of the models the issuer used to develop the ACL for loans collectively evaluated for impairment. The following deficiency was identified: • The firm did not perform procedures to evaluate whether certain of the models the issuer used were in conformity with the requirements of GAAP and appropriate for the nature of the ACL beyond reading the company's specialist's report. 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 - A.10; AS 2501.10) Both financial statement and ICFR audits | 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 2501.10 | Significant risk |
| 10 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ACL was to test the issuer's process and the firm used the work of company specialists to evaluate the appropriateness of certain of the models the issuer used to develop the ACL for loans collectively evaluated for impairment. The following deficiency was identified: • The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used to develop the ACL beyond reading an issuer-prepared memorandum. (AS 2501.16) Both financial statement and ICFR audits | AS 2501.16 | Significant risk |
| 11 | Allowance for Credit/Loan Losses | The firm's approach for substantively testing the ACL was to test the issuer's process and the firm used the work of company specialists to evaluate the appropriateness of certain of the models the issuer used to develop the ACL for loans collectively evaluated for impairment. The following deficiency was identified: • The firm used issuer-prepared loan delinquency data in its substantive testing of the ACL but did not perform procedures to test or test any controls over the accuracy of this data. (AS 1105.10) Both financial statement and ICFR audits | AS 1105.10 | Significant risk |