- Inspection year
- 2025
- Report date
- 22-Dec-2025
- PCAOB release
- 104-2026-030
- Audits reviewed
- 3
- Audits w/ Part I.A deficiencies
- 3
- Part I.A deficiency rate
- 100%
- Part I.A deficiencies
- 14
- Part I.B deficiencies
- 7
- Report
- View PDF ↗
Deficiencies (14)
Grouped by issuer and in the same order as the PCAOB report, so each item ties back directly to the source.
Issuer A6 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to (1) evaluate the relevance and reliability of certain external data that the company's specialist used to develop assumptions considered significant by the firm and (2) test the accuracy and completeness of certain issuer-produced data that the company's specialist used to develop other assumptions also considered significant by the firm all of which were used by the company's specialist to determine the fair values of these intangible assets. (AS 1105.A8a) Financial statement audit only | AS 1105.A8a | Significant risk |
| 2 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the reasonableness of an assumption considered significant by the firm developed by the company's specialist and used by the specialist to determine the fair values of the intangible assets beyond determining that the selected value of the assumption was the midpoint in a range of potential assumptions from an external source used by the issuer. (AS 1105.A8b) Financial statement audit only | AS 1105.A8b | Significant risk |
| 3 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the relevance and reliability of certain industry and other external information provided by the issuer that was used by the firm to evaluate the reasonableness of the issuer's revenue forecast. (AS 1105.04 and .06) Financial statement audit only | AS 1105.4; AS 1105.6 | Significant risk |
| 4 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the fair values of the acquired assets including certain intangible assets. The following deficiency was identified. • The firm did not perform sufficient procedures to evaluate the reasonableness of the issuer's revenue forecasts used by the company's specialist to determine the fair values of the intangible assets because it did not (1) perform procedures to evaluate whether the issuer had a reasonable basis for these significant assumptions and (2) take into account the issuer's intent and ability to meet the revenue predictions including whether the issuer has the financial resources and/or other means to meet the projections. (AS 2501.16 and .17) Financial statement audit only | AS 2501.16; AS 2501.17 | Significant risk |
| 5 | Cash and Cash Equivalents | The firm used an external digital confirmation platform to confirm cash but did not perform any procedures to support its reliance on this digital platform's ability to maintain control over the confirmation requests and responses. (AS 2310.28) Financial statement audit only | AS 2310.28 | |
| 6 | Related Party Transactions | The firm did not perform sufficient procedures to test a related party transaction because it did not (1) read the underlying documentation and evaluate whether the terms and other information about the transaction were consistent with explanations from inquiries and other audit evidence about the business purpose (or the lack thereof) of the transaction (2) determine whether the transaction had been authorized and approved in accordance with the issuer's established policies and procedures and (3) determine whether any exceptions to the issuer's established policies and procedures were granted. (AS 2410.12) Financial statement audit only | AS 2410.12 |
Issuer B4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Revenue | The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: • The firm did not perform any procedures to test (1) contractual arrangements to determine whether certain revenue was recorded in accordance with IFRS 15 Revenue from Contracts with Customers and (2) whether the issuer's performance obligations had been satisfied before revenue recognition beyond obtaining and reviewing internally generated customer invoices. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 2 | Revenue | The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: • The firm did not perform any procedures to test certain other revenue. (AS 2301.08 and .13) Financial statement audit only | AS 2301.8; AS 2301.13 | |
| 3 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the purchase price allocation and fair values of the acquired assets including certain goodwill and other intangible assets. The following deficiency was identified. • The firm did not perform procedures to test the purchase price allocation and fair value of the goodwill and other intangible assets acquired in the business combination beyond obtaining and reading the valuation reports prepared by the company's specialist and agreeing amounts from those reports to the general ledger. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |
| 4 | Business Combinations | During the year the issuer acquired a business and engaged an external specialist to assist in determining the purchase price allocation and fair values of the acquired assets including certain goodwill and other intangible assets. The following deficiency was identified. • The firm did not perform procedures to evaluate the work of the company's specialist. (AS 1105.A6 - .A10) Financial statement audit only | AS 1105.A10; AS 1105.A6; AS 1105.A7; AS 1105.A8; AS 1105.A9 | Significant risk |
Issuer C4 deficiencies
| # | Area | Deficiency | Standard | Flags |
|---|---|---|---|---|
| 1 | Intangible Assets | The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform procedures to evaluate whether the issuer had capitalized the costs associated with these intangible assets in accordance with IAS 38 Intangible Assets beyond inquiry of management and reading management's assessment of the intangible assets. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 2 | Intangible Assets | The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform procedures to test the impairment expense recorded by the issuer related to these intangible assets beyond inquiry of management. (AS 2501.07) Financial statement audit only | AS 2501.7 | Significant risk |
| 3 | Intangible Assets | The issuer reported intangible assets and performed an assessment of those assets for possible impairment. The principal auditor instructed the firm to perform procedures to test the valuation of these assets including an evaluation of indicators of impairment. The following deficiency was identified: • The firm did not perform any procedures to evaluate how management determined whether any indicators of impairment existed with respect to these intangible assets at year end. (AS 2301.08 and .11) Financial statement audit only | AS 2301.8; AS 2301.11 | Significant risk |
| 4 | Long-Lived Assets | The firm did not perform any procedures to evaluate whether certain assets met the definition of property plant and equipment in accordance with IAS 16 Property Plant and Equipment because the firm did not evaluate the business purpose of the assets beyond inquiry of management. (AS 2301.08) Financial statement audit only | AS 2301.8 |