- Inspection year
- 2025
- Report date
- 22-Dec-2025
- PCAOB release
- 104-2026-027
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 2
- Part I.A deficiency rate
- 67%
- Part I.A deficiencies
- 7
- Part I.B deficiencies
- —
- Report
- View PDF ↗
Deficiencies (7)
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 | Prepayments | To test certain prepayments the firm sent positive confirmation requests to a sample of the issuer's vendors. For certain positive confirmation requests for which it did not receive a response the firm did not perform alternative procedures that provided sufficient appropriate audit evidence. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 2 | Accrued Expenses | The firm was instructed by the principal auditor to perform certain procedures to test the existence of accrued expenses which included sending positive confirmation requests to a sample of the issuer's vendors. The following deficiency was identified: • For one confirmation request that was not returned the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the accrued expense existed as of year end. (AS 2310.31) Financial statement audit only | AS 2310.31 | |
| 3 | Accrued Expenses | The firm was instructed by the principal auditor to perform certain procedures to test the existence of accrued expenses which included sending positive confirmation requests to a sample of the issuer's vendors. The following deficiency was identified: • The firm received electronic responses to certain confirmation requests. 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 | |
| 4 | Deferred Revenue | The firm was instructed by the principal auditor to perform certain procedures to test the existence of deferred revenue. The firm selected a sample of balances to test certain deferred revenue but did not perform any procedures to evaluate whether the balances represented liabilities as of year end. (AS 2301.08) Financial statement audit only | AS 2301.8 | |
| 5 | Deferred Revenue | The firm was instructed by the principal auditor to perform certain procedures to test the existence of deferred revenue. The firm did not perform procedures to test or identify and test any controls over the completeness of an issuer-prepared report from which it made certain of its selections for testing. (AS 1105.10) Financial statement audit only | AS 1105.10 |
Issuer B2 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The firm was instructed by the principal auditor to perform year-end cut-off procedures. The firm did not perform procedures to test or identify and test any controls over the completeness of the system-generated report used to select samples subsequent to year end to test cut-off. (AS 1105.10) Financial statement audit only | AS 1105.10 | |
| 2 | Accounts Receivable | The issuer's policy is to apply payments to the oldest outstanding accounts receivable balance first. The firm used system-generated accounts receivable aging reports to substantively test the allowance for credit losses. The firm did not perform sufficient procedures to test the accuracy of these reports because it did not perform procedures to evaluate whether any accounts receivable balances were inappropriately removed from the aging reports due to the issuer's policy while other accounts receivable balances inappropriately remained. (AS 1105.10) Financial statement audit only | AS 1105.10 |