- Inspection year
- 2025
- Report date
- 08-Dec-2025
- PCAOB release
- 104-2026-023
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 10
- Part I.B deficiencies
- 12
- Report
- View PDF ↗
Deficiencies (10)
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 | Debt | The firm selected for testing certain controls over the issuer's review and approval of adjustments to debt. The firm did not evaluate the review procedures that the control owners performed including procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.42 and .44) Unrelated to our review the issuer reevaluated its accounting for certain debt and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm issued an audit report on the issuer's restated financial statements. Our procedures did not include review of any additional audit work related to the restatement. The issuer also reevaluated its controls over debt and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR and the firm revised its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion. Our procedures did not include review of any additional audit work related to this material weakness. Both financial statement and ICFR audits | AS 2201.42; AS 2201.44 | |
| 2 | Debt | The firm selected for testing certain controls over the issuer's review and approval of adjustments to debt. The firm did not identify and evaluate a departure from IFRS related to the issuer's accounting for and presentation of certain debt in conformity with IAS 32 Financial Instruments: Presentation. (AS 2810.30 and .31) Unrelated to our review the issuer reevaluated its accounting for certain debt and concluded that a material misstatement existed that had not been previously identified. The issuer subsequently corrected this misstatement in a restatement of its financial statements and the firm issued an audit report on the issuer's restated financial statements. Our procedures did not include review of any additional audit work related to the restatement. The issuer also reevaluated its controls over debt and concluded that a material weakness existed that had not been previously identified. The issuer subsequently reflected this material weakness in a revision to its report on ICFR and the firm revised its opinion on the effectiveness of the issuer's ICFR to express an adverse opinion. Our procedures did not include review of any additional audit work related to this material weakness. Both financial statement and ICFR audits | AS 2810.30; AS 2810.31 | |
| 3 | Accounts Receivable | The firm selected for testing certain controls over the issuer's review of accounts receivables and the allowance for credit losses. The firm did not identify and test any controls over the accuracy of reports used in the operation of these controls. (AS 2201.39) Both financial statement and ICFR audits | AS 2201.39 | |
| 4 | Journal Entries | For certain of the issuer's subsidiaries the firm did not perform any procedures to identify and select journal entries and other adjustments for testing without having an appropriate basis for excluding those subsidiaries. (AS 2401.61) Both financial statement and ICFR audits | AS 2401.61 |
Issuer B5 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm did not test or test any controls over the accuracy of certain system-generated reports used to substantively test revenue. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 2 | Accounts Receivable | To test accounts receivable the firm sent positive confirmation requests to a sample of customer accounts. The firm did not consider performing procedures to address the risks associated with electronic responses such as verifying the source and contents of the confirmation responses. (AS 2310.29) Financial statement audit only | AS 2310.29 | |
| 3 | Significant Accounts | The issuer engaged external specialists to assist in determining the fair value of a significant account at inception and at year-end. The following deficiency was identified: • The firm did not perform procedures to test the inception date fair value of the significant account beyond obtaining and reading the company's specialist's report. Further the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence. (AS 1105.A1 - .A10; AS 2501.07) 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 2501.7 | |
| 4 | Significant Accounts | The issuer engaged external specialists to assist in determining the fair value of a significant account at inception and at year-end. The following deficiency was identified: • The firm did not perform any procedures to evaluate the reasonableness of a certain significant assumption developed and used by the company's specialist to estimate the year-end fair value of the significant account. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | |
| 5 | Significant Accounts | The issuer engaged external specialists to assist in determining the fair value of a significant account at inception and at year-end. The following deficiency was identified: • The firm did not perform sufficient procedures to evaluate whether the methodology used by the company's specialist to develop the year-end fair value of the significant account was appropriate under the circumstances because the firm did not evaluate whether the data and significant assumptions were appropriately applied under the applicable financial reporting framework. (AS 1105.A8c) Financial statement audit only | AS 1105.A8c |
Issuer C1 deficiency
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Journal Entries | The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58) Financial statement audit only | AS 2401.58 |