- Inspection year
- 2024
- Report date
- 08-Dec-2025
- PCAOB release
- 104-2026-020
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 12
- Part I.B deficiencies
- 6
- Report
- View PDF ↗
Deficiencies (12)
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 | Equity-Related Transactions | The firm's approach for substantively testing the valuation of certain equity-related transactions was to test the issuer's process. The firm did not perform sufficient procedures to evaluate whether the issuer had a reasonable basis for certain of the significant assumptions used to estimate the valuation of these equity-related transactions because the firm did not evaluate how the issuer considered certain relevant factors required under GAAP when developing these significant assumptions. (AS 2501.16) Financial statement audit only | AS 2501.16 | |
| 2 | Equity-Related Transactions | In addition the firm did not identify and evaluate departures from GAAP related to: • the issuer's method used to record estimated expenses associated with these transactions; (AS 2501.10) Financial statement audit only | AS 2501.10 | |
| 3 | Equity-Related Transactions | In addition the firm did not identify and evaluate departures from GAAP related to: • the issuer's omission of certain disclosures required under GAAP for these transactions. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 4 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer and used in this impairment analysis. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 5 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer and used in this impairment analysis beyond performing a sensitivity analysis. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not perform substantive procedures beyond obtaining certain cash receipt evidence to evaluate (1) whether the performance obligations had been satisfied before revenue was recognized and (2) the accuracy of the transaction price used to record revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment using cash-flow forecasts. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the issuer's method to determine the fair value used in the assessment that excluded certain costs from these cash-flow forecasts was in conformity with GAAP. (AS 2501.10) Financial statement audit only | AS 2501.10 | Significant risk |
| 3 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment using cash-flow forecasts. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The following deficiency was identified: • The firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed by the issuer because its procedures were limited to comparing this assumption with the assumption used in prior years' impairment assessments. Further the firm did not evaluate a significant difference between this assumption and the issuer's historical experience. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 4 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment using cash-flow forecasts. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The following deficiency was identified: • The firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the issuer because it did not evaluate the consistency of this assumption with historical or recent experience taking into account that this assumption was based on certain conditions or events that affected the company in the current year that may not recur in future years. (AS 2501.16) Financial statement audit only | AS 2501.16 | Significant risk |
| 5 | Goodwill | The issuer engaged a specialist to perform an assessment of goodwill for possible impairment using cash-flow forecasts. The firm's approach for substantively testing this impairment assessment was to test the issuer's process. The following deficiency was identified: • The firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed by the company's specialist because the firm did not perform any procedures to evaluate the reasonableness of a component of this assumption. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
Issuer C2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Significant Transactions | During the year the issuer entered into a significant transaction. The following deficiency was identified: • The firm did not identify and evaluate certain departures from GAAP related to the issuer's accounting for and disclosures associated with this transaction. (AS 2810.30 and .31) Financial statement audit only | AS 2810.30; AS 2810.31 | |
| 2 | Significant Transactions | During the year the issuer entered into a significant transaction. The following deficiency was identified: • The firm did not evaluate the appropriateness of certain other aspects of the issuer's accounting for this transaction. (AS 2301.08) Financial statement audit only | AS 2301.8 |