[ { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the actuarial valuation of certain insurance-related assets and liabilities. The firm did not evaluate the specific review procedures that the control owner performed to identify and assess variances that existed in the data that the issuer used to perform this actuarial valuation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the actuarial valuation of certain insurance-related assets and liabilities. The firm did not evaluate the specific review procedures that the control owner performed to identify and assess variances that existed in the data that the issuer used to perform this actuarial valuation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain issuer-prepared schedules in its substantive testing of the issuer’s insurance-related disclosures but did not perform any procedures to test, or test any controls over, the accuracy of these issuer-prepared schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer offered various forms of sales incentives to customers that were recorded as deductions to revenue with a corresponding accrual for sales incentives. The firm selected for testing a control that consisted of the issuer’s review of certain accrued sales incentives, including the customer-level budgets that were used to develop these accrued sales incentives. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these budgets. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer offered various forms of sales incentives to customers that were recorded as deductions to revenue with a corresponding accrual for sales incentives. The firm selected for testing a control that consisted of the issuer’s review of certain accrued sales incentives, including the customer-level budgets that were used to develop these accrued sales incentives. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these budgets. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer offered various forms of sales incentives to customers that were recorded as deductions to revenue with a corresponding accrual for sales incentives. The firm selected for testing a control that consisted of the issuer’s review of certain accrued sales incentives, including the customer-level budgets that were used to develop these accrued sales incentives. The firm did not identify and test any controls over the accuracy and completeness of certain data that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer disclosed that it had not recorded deferred income tax liabilities for undistributed foreign earnings that it considered indefinitely invested in certain subsidiaries. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed the issuer’s specific plans for the reinvestment of these undistributed foreign earnings. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Jul-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed that it had not recorded deferred income tax liabilities for undistributed foreign earnings that it considered indefinitely invested in certain subsidiaries. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the issuer’s evidence of specific plans for the reinvestment of these undistributed foreign earnings, beyond inquiring of management. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls that addressed whether the issuer’s classification of its convertible debt as a long-term liability was appropriate. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that the issuer’s classification of its convertible debt as a long-term liability was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its classification of this convertible 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over this convertible 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 include this material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that the issuer’s classification of its convertible debt as a long-term liability was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its classification of this convertible 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over this convertible 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 include this material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired proved and unproved properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes.\nThe following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption used for the acquired proved and unproved properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired proved and unproved properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes.\nThe following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption used for the acquired proved and unproved properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired proved and unproved properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes.\nThe following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes for the acquired proved and unproved properties because the firm’s procedures were limited to inquiring of the company’s specialists, performing certain analytical procedures, and testing historical production volume information for producing properties. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption used for one of the issuer’s business units but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes for certain properties. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption used for one of the issuer’s business units but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes for certain properties. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned (“proved properties”) and properties that had no oil and gas reserves assigned (“unproved properties”). The issuer used company specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes for this business unit because the firm’s procedures were limited to inquiring of the company’s specialists and testing historical production volume information for producing properties. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the review of the accuracy and completeness of the reports the issuer used in its impairment analysis. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the review of the accuracy and completeness of the reports the issuer used in its impairment analysis. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the review of the accuracy and completeness of the reports the issuer used in its impairment analysis. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the review of the accuracy and completeness of the reports the issuer used in its impairment analysis. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that included the review of the assumptions that the issuer used in the cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the revenue growth rate assumption that the issuer used for one asset group. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that included the review of the assumptions that the issuer used in the cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the revenue growth rate assumption that the issuer used for one asset group. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that included the review of the assumptions that the issuer used in the cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the revenue growth rate assumption that the issuer used for one asset group. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm selected for testing a control that included the review of the assumptions that the issuer used in the cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the revenue growth rate assumption that the issuer used for one asset group. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate whether the adjustments that the issuer made to determine the cash-flow forecasts were appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer had a reasonable basis for the revenue growth rate assumption that it used in the cash-flow forecasts for one asset group, including taking into account the issuer’s ability to carry out its planned course of action for this significant assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer had a reasonable basis for the revenue growth rate assumption that it used in the cash-flow forecasts for one asset group, including taking into account the issuer’s ability to carry out its planned course of action for this significant assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer had a reasonable basis for the revenue growth rate assumption that it used in the cash-flow forecasts for one asset group, including taking into account the issuer’s ability to carry out its planned course of action for this significant assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer performed an impairment analysis for its long-lived assets and lease right-of-use assets using cash-flow forecasts that were based on a profit and loss report, adjusted for certain expenses, for each asset group. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer had a reasonable basis for the revenue growth rate assumption that it used in the cash-flow forecasts for one asset group, including taking into account the issuer’s ability to carry out its planned course of action for this significant assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the accuracy of certain contractual terms. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unearned Premiums", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the accuracy of certain contractual terms. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing customer payments for a selection of contract amendments. For each item tested, the payment that the issuer received occurred before the effective date of the contract amendment. The firm did not evaluate whether these customer payments were made in exchange for services provided under the amended contracts. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unearned Premiums", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing customer payments for a selection of contract amendments. For each item tested, the payment that the issuer received occurred before the effective date of the contract amendment. The firm did not evaluate whether these customer payments were made in exchange for services provided under the amended contracts. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers, related to the aggregate transaction price allocated to the remaining performance obligations. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers, related to the aggregate transaction price allocated to the remaining performance obligations. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 606 related to the aggregate transaction price allocated to the remaining performance obligations. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosure of its remaining performance obligations and determined that an error existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer disclosed the adjustment to this disclosure in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Jun-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 606 related to the aggregate transaction price allocated to the remaining performance obligations. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosure of its remaining performance obligations and determined that an error existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer disclosed the adjustment to this disclosure in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the accuracy of the prices that the issuer used to record revenue for certain business units. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test revenue for one of the issuer’s business units was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer discounts. The firm used an issuer-produced report in its substantive testing of one of the issuer’s discount programs but did not test, or test controls over, the accuracy of this report. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "For certain accounts receivable, the firm’s approach for substantively testing the allowance for doubtful accounts was to develop an independent expectation of the estimate. The firm did not have a reasonable basis for the assumptions used to develop its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue at a point in time based, in part, on the date a contract became effective. The firm selected for testing certain automated and IT-dependent manual controls over revenue recognition but did not test any controls over the accuracy of the effective dates used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. Certain contracts included an estimate of variable consideration in the transaction price. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s (1) identification of the performance obligations; (2) determination of the transaction price, including any variable consideration; and (3) allocation of the transaction price to those performance obligations. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. Certain contracts included an estimate of variable consideration in the transaction price. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the issuer’s (1) identification of the performance obligations; (2) determination of any variable consideration in the transaction price; and (3) allocation of the transaction price to those performance obligations. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used a service provider’s software to manage certain assets it held for its customers, and the access and rights to these assets required passwords that were stored on various mobile devices. The issuer also received certain recovery information in the event these devices became inaccessible and secured this information. The following deficiencies were identified:\n· The firm did not identify or test any controls that addressed the risk of misuse or loss of the mobile devices. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used a service provider’s software to manage certain assets it held for its customers, and the access and rights to these assets required passwords that were stored on various mobile devices. The issuer also received certain recovery information in the event these devices became inaccessible and secured this information. The following deficiencies were identified:\n· The firm selected for testing a control over access to the issuer’s secured recovery information. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the access granted, including the length of that access. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used a service provider’s software to manage certain assets it held for its customers, and the access and rights to these assets required passwords that were stored on various mobile devices. The issuer also received certain recovery information in the event these devices became inaccessible and secured this information. The following deficiencies were identified:\n· The firm selected for testing a control over access to the issuer’s secured recovery information. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the access granted, including the length of that access. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used a service provider’s software to manage certain assets it held for its customers, and the access and rights to these assets required passwords that were stored on various mobile devices. The issuer also received certain recovery information in the event these devices became inaccessible and secured this information. The following deficiencies were identified:\n· The firm selected for testing a control over access to the issuer’s secured recovery information. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s initiation and approval of transactions related to these assets using the mobile devices and related passwords and designed its procedures to address both the control and financial statement risks. The following deficiencies were identified:\n· The firm’s testing of this control did not provide sufficient appropriate audit evidence about the operating effectiveness as of year end because the issuer executed these transactions, and the firm performed its procedures to test this control, after year end. The firm did not perform any procedures to determine that there were no changes to this control between year end and the testing date and that the issuer had access to the mobile devices and related passwords at year end. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s initiation and approval of transactions related to these assets using the mobile devices and related passwords and designed its procedures to address both the control and financial statement risks. The following deficiencies were identified:\n· The firm did not perform substantive procedures, beyond the procedures performed after year end discussed above, to evaluate whether the issuer had access to the mobile devices and related passwords at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s initiation and approval of transactions related to these assets using the mobile devices and related passwords and designed its procedures to address both the control and financial statement risks. The following deficiencies were identified:\n· The firm did not perform substantive procedures, beyond the procedures performed after year end discussed above, to evaluate whether the issuer had access to the mobile devices and related passwords at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s evaluation of whether certain deferred costs represented costs incurred and whether the issuer’s capitalization of these costs was appropriate. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether these deferred costs represented costs incurred and whether the issuer’s capitalization of these costs was appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer determined the amortization of its deferred costs related to completed projects, in part, based on customer usage data that it obtained from an external party. The issuer made certain adjustments to these data before uploading the data to one of its systems and then later extracted certain data from this system to evaluate customer usage. The following deficiencies were identified:\n· The firm did not identify and test any controls over the reasonableness of the adjustments the issuer made to the external data. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer determined the amortization of its deferred costs related to completed projects, in part, based on customer usage data that it obtained from an external party. The issuer made certain adjustments to these data before uploading the data to one of its systems and then later extracted certain data from this system to evaluate customer usage. The following deficiencies were identified:\n· The firm selected for testing automated controls over the upload and extraction of the customer usage data. In its testing of the accuracy and/or completeness of the data that were uploaded and extracted, the firm did not test the configuration or programming of the automated controls or perform other procedures that would have provided sufficient appropriate audit evidence that these automated controls were operating effectively. (AS 2201. 44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of certain assets using various assumptions. The firm’s approach for substantively testing the fair value of these assets was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and used by the company’s specialist, beyond reading the memorandum prepared by the company’s specialist and comparing certain assumptions to the issuer’s valuation policy. Further, the firm did not perform procedures, beyond assessing the knowledge, skill, and ability of the company’s specialist and the specialist’s relationship to the issuer, with respect to its use of the work of the company’s specialist as audit evidence. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded its inventory at standard costs and periodically adjusted its inventory to actual costs incurred by recording adjustments based on the differences between the actual costs incurred and the costs recorded at standard. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the actual costs and variances between actual and standard costs. The firm did not evaluate the specific review procedures that the control owners performed to assess (1) the accuracy and completeness of the information used in the variance analysis and (2) whether the actual costs represented appropriate costs to capitalize to inventory. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded its inventory at standard costs and periodically adjusted its inventory to actual costs incurred by recording adjustments based on the differences between the actual costs incurred and the costs recorded at standard. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the actual costs and variances between actual and standard costs. The firm did not evaluate the specific review procedures that the control owners performed to assess (1) the accuracy and completeness of the information used in the variance analysis and (2) whether the actual costs represented appropriate costs to capitalize to inventory. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded its inventory at standard costs and periodically adjusted its inventory to actual costs incurred by recording adjustments based on the differences between the actual costs incurred and the costs recorded at standard. The following deficiencies were identified:\n· The firm did not perform any procedures to test whether finished goods inventory, work-in-process inventory, and certain raw materials inventory were valued at actual cost. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to initiate, process, and record transactions related to long-lived assets. The firm selected for testing a control that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. The firm did not evaluate the specific review procedures the control owner performed to assess whether the system changes were appropriately tested and approved prior to implementation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to initiate, process, and record transactions related to long-lived assets. The firm selected for testing a control that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. The firm did not evaluate the specific review procedures the control owner performed to assess whether the system changes were appropriately tested and approved prior to implementation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "In its testing of controls over long-lived assets, the firm tested an automated control over purchases that used data maintained by this IT system. As a result of the deficiency in the firm’s testing of the IT general control, the firm’s testing of this control was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that consisted of the issuer’s review of the costs capitalized to long-lived assets compared to budgeted amounts. The firm did not evaluate the specific review\nprocedures that the control owner performed to investigate identified variances. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that consisted of the issuer’s review of the costs capitalized to long-lived assets compared to budgeted amounts. The firm did not evaluate the specific review\nprocedures that the control owner performed to investigate identified variances. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that consisted of the issuer’s review of the costs capitalized to long-lived assets compared to budgeted amounts. The firm selected for testing a change management control that addressed the accuracy and completeness of the reports that the control owner used in the operation of the budget-to-actual review control but did not perform procedures, beyond inquiry, to determine whether these reports were subject to this change management control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that consisted of the issuer’s review of the costs capitalized to long-lived assets compared to budgeted amounts. The firm selected for testing a change management control that addressed the accuracy and completeness of the reports that the control owner used in the operation of the budget-to-actual review control but did not perform procedures, beyond inquiry, to determine whether these reports were subject to this change management control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For its commercial loans, the issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The issuer uses an internal loan review function to independently review the loan risk ratings for a sample of loans across its various lending units on an annual basis and determined the specific lending units that needed to be reviewed to obtain appropriate coverage over the commercial loan portfolio in the current year. This plan was approved by the audit committee, which also monitors the results of the independent reviews and recommends changes to the issuer’s ACL, as necessary. The firm selected for testing controls that included the independent review of the loan risk ratings and the related review and approval by the audit committee. In its testing of the operating effectiveness of these controls, the firm did not evaluate that the internal loan review function had not completed its entire review for all lending units included in the approved plan. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the existence of certain inventory. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Assets Held for Sale", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer formalized plans to dispose of certain business units and allocated the assets of these business units to various disposal groups. For certain of these disposal groups, the issuer determined that the fair values less costs to sell were lower than their carrying values, resulting in the reporting of an expected disposal loss. The following deficiencies were identified:\n· The firm selected for testing controls related to the issuer’s reviews of the determination of fair values less costs to sell for these disposal groups. In its testing of the operating effectiveness of these controls, the firm did not identify that the controls did not operate as designed with respect to the control owners’ evaluation for conformity with GAAP. (AS 2201.44)\nIn connection with our review, the issuer reevaluated its accounting for these disposal groups 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over these disposal groups 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 and reissued its report. Our procedures did not include review of any additional audit work related to the restatement or the material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Assets Held for Sale", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer formalized plans to dispose of certain business units and allocated the assets of these business units to various disposal groups. For certain of these disposal groups, the issuer determined that the fair values less costs to sell were lower than their carrying values, resulting in the reporting of an expected disposal loss. The following deficiencies were identified:\n· The firm did not identify and evaluate that the issuer did not comply with FASB ASC Topic 820, Fair Value Measurement, and FASB ASC Topic 360, Property, Plant, and Equipment, because, for certain disposal groups, the issuer determined the fair values less costs to sell of certain assets within the disposal group were less than zero and/or recorded an expected disposal loss in excess of the carrying value of the disposal group. (AS 2810.30)\nIn connection with our review, the issuer reevaluated its accounting for these disposal groups 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over these disposal groups 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 and reissued its report. Our procedures did not include review of any additional audit work related to the restatement or the material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of loan data that addressed the risk that collections are not applied to the appropriate loan receivable. The firm did not test the aspect of this control that addressed the accuracy of certain loan data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of loan data that addressed the risk that collections are not applied to the appropriate loan receivable. The firm did not test the aspect of this control that addressed the accuracy of certain loan data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of loan data that addressed the risk that collections are not applied to the appropriate loan receivable. The firm did not test the aspect of this control that addressed the accuracy of certain loan data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of loan data that addressed the risk that collections are not applied to the appropriate loan receivable. The firm did not test the aspect of this control that addressed the accuracy of certain loan data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s review of the mathematical logic of the automated calculations of recorded loans receivable and the related revenue. The firm did not test this aspect of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s review of the mathematical logic of the automated calculations of recorded loans receivable and the related revenue. The firm did not test this aspect of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s review of the mathematical logic of the automated calculations of recorded loans receivable and the related revenue. The firm did not test this aspect of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s review of the mathematical logic of the automated calculations of recorded loans receivable and the related revenue. The firm did not test this aspect of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test loans receivable was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the first deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed assessments of its goodwill for possible impairment, and the firm selected for testing controls that consisted of the issuer’s reviews of these assessments and related significant assumptions. The firm did not evaluate the specific review procedures that the control owners performed to (1) evaluate the reasonableness of certain significant assumptions and (2) assess the accuracy and completeness of certain historical data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed assessments of its goodwill for possible impairment, and the firm selected for testing controls that consisted of the issuer’s reviews of these assessments and related significant assumptions. The firm did not evaluate the specific review procedures that the control owners performed to (1) evaluate the reasonableness of certain significant assumptions and (2) assess the accuracy and completeness of certain historical data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain significant assumptions used in the impairment assessments. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because its procedures were limited to inquiring of management and comparing with existing market information. The firm did not evaluate the relevance and reliability of the market information it used, and it did not identify that this information was inconsistent with the assumptions in certain cases. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because its procedures were limited to inquiring of management and comparing with existing market information. The firm did not evaluate the relevance and reliability of the market information it used, and it did not identify that this information was inconsistent with the assumptions in certain cases. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because its procedures were limited to inquiring of management and comparing with existing market information. The firm did not evaluate the relevance and reliability of the market information it used, and it did not identify that this information was inconsistent with the assumptions in certain cases. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on customer activity that was processed and recorded using various information-technology (IT) systems. The issuer identified material weaknesses related to ineffective IT general controls (ITGCs) over these systems. The firm did not perform sufficient procedures to test, or test controls over, the accuracy of the customer activity information from these IT systems that it used in its substantive testing of this revenue given that ITGCs over these systems were ineffective. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer performed an assessment of goodwill for possible impairment using various significant assumptions. The firm did not sufficiently evaluate the reasonableness of the significant assumptions related to revenue growth rates because its procedures were limited to inquiring of management and evaluating these assumptions for consistency with certain global industry information. The firm did not (1) evaluate the significant differences between these assumptions and this industry information and (2) sufficiently evaluate the relevance of this global industry information because it did not take into account the geographic markets in which the issuer operates. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer performed an assessment of goodwill for possible impairment using various significant assumptions. The firm did not sufficiently evaluate the reasonableness of the significant assumptions related to revenue growth rates because its procedures were limited to inquiring of management and evaluating these assumptions for consistency with certain global industry information. The firm did not (1) evaluate the significant differences between these assumptions and this industry information and (2) sufficiently evaluate the relevance of this global industry information because it did not take into account the geographic markets in which the issuer operates. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed an assessment of goodwill for possible impairment using various significant assumptions. The firm did not sufficiently evaluate the reasonableness of the significant assumptions related to revenue growth rates because its procedures were limited to inquiring of management and evaluating these assumptions for consistency with certain global industry information. The firm did not (1) evaluate the significant differences between these assumptions and this industry information and (2) sufficiently evaluate the relevance of this global industry information because it did not take into account the geographic markets in which the issuer operates. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer capitalized costs associated with the development of certain intangible assets. The firm used certain issuer-produced information in its substantive testing of these capitalized costs but did not perform procedures to test, or test controls over, the accuracy and completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain information produced by the issuer in (1) its substantive testing of revenue and leases and (2) evaluating whether management’s plans alleviated the substantial doubt about the issuer’s ability to continue as a going concern. The firm did not perform procedures to test, or test controls over, the accuracy and/or completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain information produced by the issuer in (1) its substantive testing of revenue and leases and (2) evaluating whether management’s plans alleviated the substantial doubt about the issuer’s ability to continue as a going concern. The firm did not perform procedures to test, or test controls over, the accuracy and/or completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain information produced by the issuer in (1) its substantive testing of revenue and leases and (2) evaluating whether management’s plans alleviated the substantial doubt about the issuer’s ability to continue as a going concern. The firm did not perform procedures to test, or test controls over, the accuracy and/or completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to (1) evaluate the appropriateness of the issuer’s classification of deferred revenue associated with certain contracts as a current or non-current liability and (2) test the issuer’s disclosure of revenue recognized in the reporting period that was reported as deferred revenue at the beginning of the period. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm used certain issuer-prepared forecasted financial information in its evaluation of the issuer’s ability to continue as a going concern and concluded that the substantial doubt was alleviated by management’s plans. The firm did not perform procedures to evaluate this information, beyond gaining an understanding of the issuer’s process for forecasting this information. (AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm used certain issuer-prepared forecasted financial information in its evaluation of the issuer’s ability to continue as a going concern and concluded that the substantial doubt was alleviated by management’s plans. The firm did not perform procedures to evaluate this information, beyond gaining an understanding of the issuer’s process for forecasting this information. (AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm used certain issuer-prepared forecasted financial information in its evaluation of the issuer’s ability to continue as a going concern and concluded that the substantial doubt was alleviated by management’s plans. The firm did not perform procedures to evaluate this information, beyond gaining an understanding of the issuer’s process for forecasting this information. (AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer reported an investment in an entity with assets primarily consisting of oil and gas properties. The issuer engaged a specialist to estimate the oil and gas reserves that were used to determine the fair value of the issuer’s investment in this entity. The firm’s approach for substantively testing the oil and gas reserves was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not (1) perform procedures to test, or test controls over, the accuracy and completeness of certain data produced by the issuer and used by the company’s specialist and (2) evaluate the relevance and reliability of certain external information used by the company’s specialist. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer reported an investment in an entity with assets primarily consisting of oil and gas properties. The issuer engaged a specialist to estimate the oil and gas reserves that were used to determine the fair value of the issuer’s investment in this entity. The firm’s approach for substantively testing the oil and gas reserves was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist or by the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported an investment in an entity with assets primarily consisting of oil and gas properties. The issuer engaged a specialist to estimate the oil and gas reserves that were used to determine the fair value of the issuer’s investment in this entity. The firm’s approach for substantively testing the oil and gas reserves was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist or by the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported an investment in an entity with assets primarily consisting of oil and gas properties. The issuer engaged a specialist to estimate the oil and gas reserves that were used to determine the fair value of the issuer’s investment in this entity. The firm’s approach for substantively testing the oil and gas reserves was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of certain other significant assumptions developed by the issuer related to future production volumes, beyond observing that the forecasted production was consistent with industry information. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer reported an investment in an entity with assets primarily consisting of oil and gas properties. The issuer engaged a specialist to estimate the oil and gas reserves that were used to determine the fair value of the issuer’s investment in this entity. The firm’s approach for substantively testing the oil and gas reserves was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not evaluate whether the methods used by the company’s specialist were appropriate under the circumstances. (AS 1105.A8c)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of the issuer’s investment in an entity using cash-flow forecasts developed by the issuer. The firm’s approach for substantively testing the fair value of this investment was to test the issuer’s process. The firm did not sufficiently evaluate the reasonableness of the significant assumptions related to forecasted expenditures because its procedures were limited to (1) inquiring of management, (2) evaluating the reasonableness of a component of one of these assumptions, and (3) evaluating the consistency of certain of these assumptions with the issuer’s subsequent forecasts of these expenditures. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Derivative Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported a convertible debt agreement that included embedded features; the issuer accounted for these features as a derivative liability. The firm did not sufficiently evaluate the reasonableness of certain significant assumptions the issuer used to determine the fair value of the derivative liability because its procedures were limited to inquiring of management and the issuer’s audit committee and reading certain documents. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Acquisitions", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "In connection with certain acquisitions completed during the year, the issuer acquired certain agreements and concluded that these agreements did not represent an intangible asset. The firm did not perform sufficient procedures to test the issuer’s conclusion because it did not evaluate whether the issuer (1) performed procedures to determine whether a market participant would be able to enter into similarly termed agreements and (2) for certain of these agreements, evaluated the terms and conditions in effect at the acquisition date or perform procedures to determine whether certain terms were consistent with current market conditions. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on payroll costs it incurred. The firm used certain issuer-produced payroll information in its substantive testing of this revenue but did not perform procedures to test, or test controls over, the accuracy of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2025", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm identified a control deficiency related to the issuer’s control over the review of long-lived assets for possible impairment. In determining whether the deficiency represented a material weakness, the firm did not sufficiently evaluate the severity of this deficiency because it did not perform procedures to evaluate (1) the magnitude of the potential misstatement; and (2) whether there was a reasonable possibility that the issuer’s controls would fail to prevent or detect a misstatement, beyond concluding that the possibility of a misstatement was low without performing procedures to support that conclusion. (AS 2201.62)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the assumptions used in these cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the assumptions used in these cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm used certain information produced by the issuer to assess the reasonableness of certain significant assumptions but did not perform any procedures to test, or test any controls over, the accuracy of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiring of management, to evaluate the reasonableness of one of these significant assumptions that was developed by the issuer and used in the cash-flow forecasts. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm’s procedures to test another of these significant assumptions that was developed by the issuer and used in the cash-flow forecasts included comparing the assumption to industry information and to certain issuer information and reading an issuer-prepared schedule. The firm did not sufficiently evaluate whether the issuer had a reasonable basis for this assumption because the firm did not evaluate a significant difference between the assumption and the industry information. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm’s procedures to test another of these significant assumptions that was developed by the issuer and used in the cash-flow forecasts included comparing the assumption to industry information and to certain issuer information and reading an issuer-prepared schedule. The firm did not evaluate the relevance of the issuer information used in its comparison. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm’s procedures to test another of these significant assumptions that was developed by the issuer and used in the cash-flow forecasts included comparing the assumption to industry information and to certain issuer information and reading an issuer-prepared schedule. The firm did not evaluate the relevance of the issuer information used in its comparison. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced data that the company’s specialist used to determine another of these significant assumptions. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not evaluate the reliability of certain industry data and the relevance of certain issuer information it used to evaluate the reasonableness of this assumption. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair value of certain acquired intangible assets using cash-flow forecasts that were developed using various assumptions. The firm’s approach for substantively testing the valuation of these acquired intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not evaluate the reliability of certain industry data and the relevance of certain issuer information it used to evaluate the reasonableness of this assumption. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s analysis and review of the estimated standalone selling prices. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions that the issuer used to develop the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s analysis and review of the estimated standalone selling prices. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions that the issuer used to develop the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm’s approach for substantively testing the estimated standalone selling prices was to test the issuer’s process. The firm did not perform sufficient procedures to evaluate whether the issuer had a reasonable basis for the significant assumptions related to the standalone selling prices because the firm did not evaluate whether the issuer’s method to determine its standalone selling prices was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of revenue transactions for shipments greater than an established monetary threshold. The firm did not identify and test any controls over revenue transactions for shipments that were less than this established threshold. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized certain product revenue based on the shipping terms with its customers. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· For two types of service revenue, the firm selected for testing an automated control that calculated the revenue to be recognized based on the manually entered start and end dates of the contract. The firm did not identify and test any controls over the accuracy of the dates that were input into and used by the system in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· For one of these types of revenue, the firm did not identify and test any controls that addressed whether the performance obligations had been satisfied before revenue was recognized. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to test whether the performance obligations had been satisfied before this type of revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to test whether the performance obligations had been satisfied before this type of revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time and used multiple IT systems to initiate, process, and record transactions related to this revenue. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test the other type of service revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s testing of the automated control discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recognized certain other service revenue from contracts based on the labor hours incurred that were recorded in the issuer’s time systems. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the progress for each contract, including the labor hours incurred and estimated labor hours to complete the contract. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the labor hours incurred and estimated labor hours to complete the contracts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recognized certain other service revenue from contracts based on the labor hours incurred that were recorded in the issuer’s time systems. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the progress for each contract, including the labor hours incurred and estimated labor hours to complete the contract. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the labor hours incurred and estimated labor hours to complete the contracts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "17", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain other service revenue from contracts based on the labor hours incurred that were recorded in the issuer’s time systems. The following deficiencies were identified:\n· The firm used labor hours in its substantive testing of this revenue but did not perform any procedures to test, or sufficiently test controls over, the accuracy and completeness of these labor hours. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer’s process related to revenue was highly automated, with transactions being initiated, processed, and recorded by multiple information-technology (IT) systems. The issuer identified a material weakness related to ineffective IT general controls (ITGCs) over these IT systems. The following deficiencies were identified:\n· The firm’s approach for substantively testing the issuer’s primary type of gross revenue was to perform procedures over firm-initiated revenue transactions. The firm did not perform any substantive procedures to test the gross revenue that the issuer recognized from transactions initiated by its regular customers. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer’s process related to revenue was highly automated, with transactions being initiated, processed, and recorded by multiple information-technology (IT) systems. The issuer identified a material weakness related to ineffective IT general controls (ITGCs) over these IT systems. The following deficiencies were identified:\n· The firm’s approach for substantively testing the issuer’s primary type of gross revenue was to perform procedures over firm-initiated revenue transactions. The firm did not perform any substantive procedures to test the gross revenue that the issuer recognized from transactions initiated by its regular customers. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer’s process related to revenue was highly automated, with transactions being initiated, processed, and recorded by multiple information-technology (IT) systems. The issuer identified a material weakness related to ineffective IT general controls (ITGCs) over these IT systems. The following deficiencies were identified:\n· The firm used certain issuer-produced data and reports from these IT systems in its substantive procedures to test deductions from revenue. The firm did not perform sufficient procedures to test, or sufficiently test controls over, the accuracy and completeness of these data and reports because the firm’s approach depended on ITGCs that were ineffective due to the material weakness discussed above. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer held an investment in a privately held company that it recorded at cost, less impairments, and used the financial results of the underlying company to assess whether any indicators of possible impairment existed for this investment in the current year. The following deficiencies were identified:\n· The firm used these financial results in its impairment assessment but did not perform any procedures to evaluate the reliability of this information. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer held an investment in a privately held company that it recorded at cost, less impairments, and used the financial results of the underlying company to assess whether any indicators of possible impairment existed for this investment in the current year. The following deficiencies were identified:\n· The firm used these financial results in its impairment assessment but did not perform any procedures to evaluate the reliability of this information. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer held an investment in a privately held company that it recorded at cost, less impairments, and used the financial results of the underlying company to assess whether any indicators of possible impairment existed for this investment in the current year. The following deficiencies were identified:\n· The firm did not evaluate certain indicators of impairment that existed at year end. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Operating Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test payroll and certain other operating expenses included performing substantive analytical procedures. The firm used certain data to develop its expectations but did not evaluate the reliability of these data, beyond inquiring of management. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Stock-Based Compensation", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed stock-based compensation expense as a component of various operating expenses. The firm did not perform any procedures to test whether the stock-based compensation amounts the issuer included in each type of operating expense were appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether changes to the standalone selling prices for this revenue were entered into the issuer’s revenue system accurately and completely. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review and approval of estimated standalone selling prices. For certain of this revenue, the firm did not test the aspect of this control that addressed the accuracy and completeness of the transaction data that the issuer used to calculate the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review and approval of estimated standalone selling prices. For certain of this revenue, the firm did not test the aspect of this control that addressed the accuracy and completeness of the transaction data that the issuer used to calculate the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm’s approach for substantively testing the estimated standalone selling prices was to test the issuer’s process. For certain of this revenue, the firm did not sufficiently evaluate whether the issuer had a reasonable basis for the significant assumptions the issuer used to develop the standalone selling prices because the firm’s procedures were limited to reading an issuer-prepared memo and recalculating certain items. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain revenue and deferred revenue, the firm did not identify and test any controls that addressed whether the performance obligations had been satisfied before revenue was recognized. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain revenue and deferred revenue, the firm did not identify and test any controls that addressed whether the performance obligations had been satisfied before revenue was recognized. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain other revenue and deferred revenue, the firm selected for testing a control that included the issuer’s review of whether electronic delivery had occurred. The firm did not identify and test any controls over the accuracy of the electronic delivery dates that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain other revenue and deferred revenue, the firm selected for testing a control that included the issuer’s review of whether electronic delivery had occurred. The firm did not identify and test any controls over the accuracy of the electronic delivery dates that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the accuracy and/or completeness of certain data that the firm used in its substantive testing of certain revenue and deferred revenue. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the accuracy and/or completeness of certain data that the firm used in its substantive testing of certain revenue and deferred revenue. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s deficiencies in testing controls, the firm did not perform sufficient substantive procedures over revenue and deferred revenue, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s review of the future production volumes assumption used for the acquired oil and gas properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s review of the future production volumes assumption used for the acquired oil and gas properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data produced by the issuer and the relevance and reliability of certain non-financial data from external sources underlying these assumptions. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain non-financial data produced by the issuer and to evaluate the relevance and reliability of certain non-financial data from external sources that were used by the company’s specialists. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes for the acquired oil and gas properties. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer determined the fair values of the acquired oil and gas properties based on discounted cash flows it developed using various assumptions, including future production volumes. The company’s specialists used financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists to estimate the oil and gas reserves underlying the future production volumes. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes for the acquired oil and gas properties. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s review of the future production volumes assumption used for the issuer’s oil and gas properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes. (AS 2201.42 and .44)\n" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s review of the future production volumes assumption used for the issuer’s oil and gas properties but did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the non-financial assumptions used to determine the future production volumes. (AS 2201.42 and .44)\n" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data produced by the issuer and the relevance and reliability of certain non-financial data from external sources underlying these assumptions. (AS 2201.39)\n" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain non-financial data produced by the issuer and to evaluate the relevance and reliability of certain non-financial data from external sources that were used by the company’s specialists. (AS 1105.A8a)\n" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Oil and Gas Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer entered into an acquisition agreement. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to estimate the issuer’s oil and gas reserves that were used in the (1) valuation of the acquired oil and gas properties and (2) calculation of depletion expense for its oil and gas properties at year end.\nThe issuer recorded depletion expense for its oil and gas properties using the oil and gas reserves that the company’s specialists estimated using financial and non-financial data produced by the issuer and assumptions developed by the issuer or the company’s specialists. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the non-financial assumptions that appeared to the inspection team to be significant that were developed and used by the company’s specialists to develop the future production volumes. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures, beyond inquiring of management, to test the issuer’s reserve for excess and obsolete inventory. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any other substantive procedures to test whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Payable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified two control deficiencies related to segregation of duties conflicts that affected the initiation, processing, and recording of accounts payable transactions and concluded that these deficiencies, when aggregated with other control deficiencies, represented a significant deficiency. The firm identified and tested four compensating controls that it believed would mitigate these accounts payable deficiencies but did not sufficiently evaluate the mitigating effect of these controls because it (1) determined that two of these controls were ineffective, (2) did not identify that the third control involved an individual who had segregation of duties conflicts, and (3) did not identify that the last control did not address the risk of material misstatement related to disbursements since not all disbursements were subject to this control. (AS 2201.68)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The firm selected for testing a control over the valuation of these securities that included the issuer’s review of the cash-flow model assumptions and the resulting fair values determined by the models. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions and the resulting fair values. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The firm selected for testing a control over the valuation of these securities that included the issuer’s review of the cash-flow model assumptions and the resulting fair values determined by the models. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these assumptions and the resulting fair values. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer held certain investment securities that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement, and recorded them at fair value based on cash-flow models that used various assumptions. The following deficiencies were identified:\n· The sample size the firm used in its substantive procedures to test the valuation of these investment securities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Contingent Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of disclosures related to amounts due to related parties for a contingent liability that were required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its related party disclosures and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Contingent Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of disclosures related to amounts due to related parties for a contingent liability that were required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its related party disclosures and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Contingent Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of disclosures related to amounts due to related parties for a contingent liability that were required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its related party disclosures and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue from contracts based on labor hours recorded in the issuer’s time system. The firm used these labor hours in its substantive testing of this revenue but did not test, or test any controls over, the accuracy and completeness of these labor hours. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test labor and overhead costs that the issuer capitalized to inventory included performing a substantive analytical procedure. The firm did not determine whether the expectation it used in this substantive analytical procedure was based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "21-May-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test labor and overhead costs that the issuer capitalized to inventory included performing a substantive analytical procedure. The firm did not determine whether the expectation it used in this substantive analytical procedure was based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1045", "Firm Names": "Deloitte Touche Tohmatsu Auditores Independentes Ltda.", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "30-Apr-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain revenue, the issuer required customers to enter into a letter of agreement that defined the sales terms and contained an agreement expiration date. The firm selected for testing a control that consisted of the issuer’s review of the sales system to ensure that there was an active letter of agreement in place for all sales orders related to this revenue. The firm did not identify and test any controls over the accuracy of the letter of agreement expiration dates within the sales system used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1045", "Firm Names": "Deloitte Touche Tohmatsu Auditores Independentes Ltda.", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "30-Apr-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The firm’s approach for testing this revenue included performing tests of details for a sample of transactions from the last month of the year. The firm did not perform any procedures to test the population of transactions in the remaining months of the year. (AS 2315.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing two automated controls over the transfer of data between certain of these IT systems. The firm did not test the configuration or operation of certain automated aspects of these controls or perform other procedures that would have provided sufficient appropriate audit evidence that the controls were designed and operated effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing two automated controls over the transfer of data between certain of these IT systems. The firm did not test the configuration or operation of certain automated aspects of these controls or perform other procedures that would have provided sufficient appropriate audit evidence that the controls were designed and operated effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing another control that consisted of the issuer’s review of data transferred between these systems for accuracy and completeness. The firm did not evaluate the procedures the control owners performed to determine whether the items identified for follow-up were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing another control that consisted of the issuer’s review of data transferred between these systems for accuracy and completeness. The firm did not evaluate the procedures the control owners performed to determine whether the items identified for follow-up were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing another control that consisted of the issuer’s review and validation of certain other data used to recognize certain revenue transactions. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of this data. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The firm selected for testing another control that consisted of the issuer’s review and validation of certain other data used to recognize certain revenue transactions. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of this data. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record certain revenue transactions within one type of revenue. The following deficiencies were identified:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue at certain locations were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management’s review and approval of standard costs for certain inventory. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain components of these standard costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management’s review and approval of standard costs for certain inventory. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain components of these standard costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in its substantive procedures to test the valuation of this inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1010", "Firm Names": "BDO AG Wirtschaftsprufungsgesellschaft", "Inspection Year": "2024", "Country": "Germany", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "To identify and select journal entries for testing, the firm identified fraud characteristics and obtained a list of all journal entries with these characteristics. The firm did not perform sufficient procedures to test those journal entries because it examined the underlying support for only certain of the journal entries, without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1435", "Firm Names": "Ernst & Young", "Inspection Year": "2025", "Country": "Australia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and other liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer utilized certain specialists (“company’s specialists”) to assist in determining the fair value of a liability, and these specialists used various inputs and assumptions, some of which the engagement team considered to be significant. The firm’s approach for substantively testing the valuation of this liability was to use an auditor-employed specialist to test the issuer’s process that was used to develop the cost estimates necessary for the issuer to estimate the fair value of the liability.\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not (1) test the accuracy and completeness of certain issuer-produced data used by one of the company’s specialists, (2) evaluate (or sufficiently evaluate) the reasonableness of certain significant assumptions developed by another one of the company’s specialists, and (3) test, or test controls over, the accuracy of issuer-produced data that it used to evaluate the reasonableness of certain significant assumptions. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.10, .A8a, and A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1435", "Firm Names": "Ernst & Young", "Inspection Year": "2025", "Country": "Australia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and other liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer utilized certain specialists (“company’s specialists”) to assist in determining the fair value of a liability, and these specialists used various inputs and assumptions, some of which the engagement team considered to be significant. The firm’s approach for substantively testing the valuation of this liability was to use an auditor-employed specialist to test the issuer’s process that was used to develop the cost estimates necessary for the issuer to estimate the fair value of the liability.\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not (1) test the accuracy and completeness of certain issuer-produced data used by one of the company’s specialists, (2) evaluate (or sufficiently evaluate) the reasonableness of certain significant assumptions developed by another one of the company’s specialists, and (3) test, or test controls over, the accuracy of issuer-produced data that it used to evaluate the reasonableness of certain significant assumptions. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.10, .A8a, and A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1435", "Firm Names": "Ernst & Young", "Inspection Year": "2025", "Country": "Australia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and other liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer utilized certain specialists (“company’s specialists”) to assist in determining the fair value of a liability, and these specialists used various inputs and assumptions, some of which the engagement team considered to be significant. The firm’s approach for substantively testing the valuation of this liability was to use an auditor-employed specialist to test the issuer’s process that was used to develop the cost estimates necessary for the issuer to estimate the fair value of the liability.\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not (1) test the accuracy and completeness of certain issuer-produced data used by one of the company’s specialists, (2) evaluate (or sufficiently evaluate) the reasonableness of certain significant assumptions developed by another one of the company’s specialists, and (3) test, or test controls over, the accuracy of issuer-produced data that it used to evaluate the reasonableness of certain significant assumptions. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.10, .A8a, and A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1435", "Firm Names": "Ernst & Young", "Inspection Year": "2025", "Country": "Australia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and other liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer utilized certain specialists (“company’s specialists”) to assist in determining the fair value of a liability, and these specialists used various inputs and assumptions, some of which the engagement team considered to be significant. The firm’s approach for substantively testing the valuation of this liability was to use an auditor-employed specialist to test the issuer’s process that was used to develop the cost estimates necessary for the issuer to estimate the fair value of the liability.\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not (1) test the accuracy and completeness of certain issuer-produced data used by one of the company’s specialists, (2) evaluate (or sufficiently evaluate) the reasonableness of certain significant assumptions developed by another one of the company’s specialists, and (3) test, or test controls over, the accuracy of issuer-produced data that it used to evaluate the reasonableness of certain significant assumptions. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.10, .A8a, and A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1435", "Firm Names": "Ernst & Young", "Inspection Year": "2025", "Country": "Australia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and other liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer utilized certain specialists (“company’s specialists”) to assist in determining the fair value of a liability, and these specialists used various inputs and assumptions, some of which the engagement team considered to be significant. The firm’s approach for substantively testing the valuation of this liability was to use an auditor-employed specialist to test the issuer’s process that was used to develop the cost estimates necessary for the issuer to estimate the fair value of the liability.\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not (1) test the accuracy and completeness of certain issuer-produced data used by one of the company’s specialists, (2) evaluate (or sufficiently evaluate) the reasonableness of certain significant assumptions developed by another one of the company’s specialists, and (3) test, or test controls over, the accuracy of issuer-produced data that it used to evaluate the reasonableness of certain significant assumptions. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.10, .A8a, and A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to certain inventory that was monitored under the cycle count program, the following deficiencies were identified:\n· The firm selected for testing two controls over this inventory that consisted of the issuer’s (1) use of an algorithm to generate cycle counts based on stock records and inventory locations and (2) monitoring and approval of the cycle count program using a cycle count summary report, which relied on the algorithm from the first control to identify locations that had not been counted within the previous 12 months. The firm did not sufficiently test the design of these controls because it did not (1) identify that the algorithm used to generate cycle counts excluded inventory received during the previous 12 months from the population of inventory subject to cycle counts and (2) evaluate the effect of this exclusion on the controls’ ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to certain inventory that was monitored under the cycle count program, the following deficiencies were identified:\n· The firm selected for testing another control over this inventory that consisted of the issuer’s performance of daily cycle counts. The firm did not sufficiently test the operating effectiveness of this control because it did not obtain evidence regarding the control’s operation for an additional 25 randomly selected days, as specifically instructed by the principal auditor, and evaluate whether the system quantities were appropriately updated for discrepancies identified during those cycle counts. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to certain inventory that was monitored under the cycle count program, the following deficiencies were identified:\n· Due to the deficiencies discussed above, the firm’s testing of controls did not provide sufficient appropriate audit evidence that the cycle-count procedures the component used for this inventory were sufficiently reliable to produce results substantially the same as those that would have been obtained by a count of all items each year. (AS 2510.11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to certain inventory that was monitored under the cycle count program, the following deficiencies were identified:\n· The firm did not perform sufficient procedures to test one of the component’s inventory cycle counts that it observed because it did not evaluate whether inventory quantity, as recorded in the inventory management system, was appropriately updated for discrepancies identified during the cycle count, as specifically instructed by the principal auditor. (AS 2510.11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not identify and test any controls over management’s review of certain key assumptions used by the component to (1) determine reservable inventory, which was used to estimate the general reserve, and (2) develop a manual adjustment to the general reserve. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain data used by the component to determine reservable inventory, which was used to estimate the general reserve. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm selected for testing a control over the determination of the E&O Reserve that consisted of the component’s review of the reserve calculation. The firm did not perform procedures, beyond inquiries of management, to test certain attributes of this control related to the (1) accuracy and/or completeness of data underlying various manual adjustments to the general reserve and (2) accuracy of the adjustments themselves. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm selected for testing a control over the determination of the E&O Reserve that consisted of the component’s review of the reserve calculation. The firm did not perform procedures, beyond inquiries of management, to test certain attributes of this control related to the (1) accuracy and/or completeness of data underlying various manual adjustments to the general reserve and (2) accuracy of the adjustments themselves. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not perform any procedures to test, or sufficiently test controls over, the accuracy and completeness of certain data used by the component to (1) estimate the general reserve and (2) develop certain manual adjustments to the general reserve. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not perform sufficient procedures to test, or sufficiently test controls over, the accuracy and completeness of certain data used by the component to develop another manual adjustment to the general reserve. Specifically, the firm did not perform (1) sufficient procedures to test the accuracy of certain data because the sample size the firm used to test the data was smaller than the sample size the firm determined necessary for these procedures and (2) any procedures to test the accuracy and completeness of certain other data, as specifically instructed by the principal auditor. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the method used by the component to develop a manual adjustment to the general reserve was appropriate for the nature of the account, taking into account its understanding of the component and its environment. Specifically, the firm did not evaluate how the underlying adjustment reflected consideration of certain data and whether the data was appropriately used beyond the evaluation of one adjustment. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the determination of the E&O reserve, the following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the significant assumptions used by the component to develop a manual adjustment to the general reserve. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1438", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United Kingdom", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "The component monitored certain inventory using a cycle count program, which was designed to ensure all inventory was counted at least once in a 12-month period. The component’s net inventory balance included a reduction to reflect credit memos granted by suppliers, and the component maintained an excess and obsolescence reserve (“E&O Reserve”), which consisted of a general reserve and manual adjustments.\nWith respect to the reduction in inventory to reflect credit memos granted by suppliers, the following deficiency was identified:\n· To test the accuracy of the credit balances included in net inventory related to credit memos granted by suppliers, the firm sent positive confirmation requests to the component’s suppliers for four key item balances. The firm did not evaluate the nature and implication of certain additional information that was included in one of the responses and whether it represented an exception, including the implications, both quantitative and qualitative, of the potential exception. (AS 2310.33)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1467", "Firm Names": "EY Bedrijfsrevisoren BV", "Inspection Year": "2025", "Country": "Belgium", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with IFRS 15, Revenue from Contracts with Customers, because the firm did not evaluate the economic substance of this revenue and whether the transactions related to this revenue should have been accounted for as consignment arrangements. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1467", "Firm Names": "EY Bedrijfsrevisoren BV", "Inspection Year": "2025", "Country": "Belgium", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with IFRS 15, Revenue from Contracts with Customers, because the firm did not evaluate the economic substance of this revenue and whether the transactions related to this revenue should have been accounted for as consignment arrangements. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1467", "Firm Names": "EY Bedrijfsrevisoren BV", "Inspection Year": "2025", "Country": "Belgium", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the impairment of intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether the method used by the issuer to allocate the carrying value of intangible assets to certain cash generating units was in conformity with the requirements of IAS 36, Impairment of Assets, because the firm did not evaluate whether the allocation was made on a reasonable basis. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1467", "Firm Names": "EY Bedrijfsrevisoren BV", "Inspection Year": "2025", "Country": "Belgium", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Mar-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the impairment of intangible assets was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate whether the issuer had a reasonable basis for a significant assumption, beyond inquiry of management. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded certain assets at an amount at inception and subsequently recorded adjustments to these assets over time. The firm did not perform sufficient procedures to test the valuation or allocation of these assets at year end, because it limited its procedures to testing the inception amounts. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test controls over, the accuracy of certain system\u0002generated reports the firm used in its substantive testing of the allowance for doubtful accounts. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Stock-Based Compensation", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer granted stock options. The firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed by the issuer to estimate the fair value of these stock options because it did not demonstrate that it had a reasonable basis for its expectation for a component of a significant assumption. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1081", "Firm Names": "PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab", "Inspection Year": "2025", "Country": "Denmark", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "34", "Description in the Firm's Inspection Report": "The firm did not request the confirmation of accounts receivable or document how it overcame the presumption to perform confirmation procedures. (AS 2310.34 and .35)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1081", "Firm Names": "PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab", "Inspection Year": "2025", "Country": "Denmark", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "35", "Description in the Firm's Inspection Report": "The firm did not request the confirmation of accounts receivable or document how it overcame the presumption to perform confirmation procedures. (AS 2310.34 and .35)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1081", "Firm Names": "PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab", "Inspection Year": "2025", "Country": "Denmark", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accrued Liabilities", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over certain accrued liabilities that consisted of the issuer’s review of projects to ensure that the accruals were appropriate at period-end. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm selected for testing an automated control that consisted of the configuration of an information technology system to automatically perform a function based on a pre-established parameter, and the firm used a “test of one” approach to test this control. The firm’s testing of this automated control using a sample of only one instance was not sufficient because the firm did not evaluate the programming of the control or perform other procedures that would have provided sufficient appropriate audit evidence that the control was designed and operated effectively. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm selected for testing an automated control that consisted of the configuration of an information technology system to automatically perform a function based on a pre-established parameter, and the firm used a “test of one” approach to test this control. The firm’s testing of this automated control using a sample of only one instance was not sufficient because the firm did not evaluate the programming of the control or perform other procedures that would have provided sufficient appropriate audit evidence that the control was designed and operated effectively. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm selected for testing an automated control that consisted of the configuration of an information technology system to automatically perform a function based on a pre-established parameter, and the firm used a “test of one” approach to test this control. The firm’s testing of this automated control using a sample of only one instance was not sufficient because the firm did not evaluate the programming of the control or perform other procedures that would have provided sufficient appropriate audit evidence that the control was designed and operated effectively. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm selected for testing an automated control that consisted of the configuration of an information technology system to automatically perform a function based on a pre-established parameter, and the firm used a “test of one” approach to test this control. The firm’s testing of this automated control using a sample of only one instance was not sufficient because the firm did not evaluate the programming of the control or perform other procedures that would have provided sufficient appropriate audit evidence that the control was designed and operated effectively. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of certain reports prepared by a third party that were used by the firm to substantively test this revenue and related contract liabilities. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of certain reports prepared by a third party that were used by the firm to substantively test this revenue and related contract liabilities. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of certain reports prepared by a third party that were used by the firm to substantively test this revenue and related contract liabilities. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue and contract liabilities, the firm tested and placed reliance on controls. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of certain reports prepared by a third party that were used by the firm to substantively test this revenue and related contract liabilities. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from IFRS related to the issuer’s omission of a disclosure required by IAS 24, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from IFRS related to the issuer’s omission of a disclosure required by IAS 24, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from IFRS related to the issuer’s omission of a disclosure required by IAS 24, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the issuer’s review and approval of manual adjustments to inventory quantities. The firm used a system-generated report to make its selections for testing the operating effectiveness of this control and relied on its testing of this report from the prior year’s audit. The firm did not perform procedures to test, or identify and test any controls over, the accuracy and completeness of this report, beyond the procedures performed during the prior year’s audit and inquiry of management regarding any changes to the report since it was last tested. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reconciliation of certain inventory to the general ledger. The firm did not identify and test any controls over the accuracy and completeness of certain data that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the completeness of this data, which it also used to make its selections to test the operating effectiveness of the control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "To substantively test the existence of inventory at year-end, the firm observed the counting of inventory. The sample size for these procedures was reduced through reliance on a control that the firm had selected for testing, which consisted of the issuer’s performance of periodic inventory cycle counts. The sample size the firm used to perform this inventory observation was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not obtain evidence that this control was operating effectively throughout the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "29-Jan-26", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s identification of related parties and relationships and transactions with related parties. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s evaluation of whether there were any terms and conditions, outside of the sales orders, that created enforceable rights and obligations, which could affect the recognition of revenue pursuant to the FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, because it did not evaluate whether there were any terms and conditions, outside of the sales orders, that created enforceable rights and obligations, which could affect the recognition of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, because it did not evaluate whether there were any terms and conditions, outside of the sales orders, that created enforceable rights and obligations, which could affect the recognition of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the allowance for doubtful accounts (AFDA), including the review of the AFDA methodology, which is determined on a quarterly basis. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the rates used to determine the AFDA, beyond reviewing the control owner’s assessment that the rates used were in compliance with the issuer’s AFDA methodology. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the allowance for doubtful accounts (AFDA), including the review of the AFDA methodology, which is determined on a quarterly basis. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the rates used to determine the AFDA, beyond reviewing the control owner’s assessment that the rates used were in compliance with the issuer’s AFDA methodology. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s AFDA was to develop an independent expectation. The firm did not take into account (1) the requirements of an element of FASB ASC Topic 326, Financial Instruments - Credit Losses and (2) its understanding of the issuer’s process, so that its independent expectation considered the factors relevant to the estimate. Additionally, the firm did not perform procedures to demonstrate that it had a reasonable basis for the method and assumptions it used to develop its independent estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s AFDA was to develop an independent expectation. The firm did not take into account (1) the requirements of an element of FASB ASC Topic 326, Financial Instruments - Credit Losses and (2) its understanding of the issuer’s process, so that its independent expectation considered the factors relevant to the estimate. Additionally, the firm did not perform procedures to demonstrate that it had a reasonable basis for the method and assumptions it used to develop its independent estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s identification of related parties and relationships and transactions with related parties. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not test, or test any controls over, the accuracy and completeness of certain data from a report used to substantively test revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to the allowance for doubtful accounts, the firm was instructed by the lead auditor to perform certain substantive procedures to test the accounts receivable aging buckets of the component. \nThe firm did not perform any procedures to test the component’s accounts receivable aging buckets, as instructed by the lead auditor. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to certain inventory, the firm was instructed by the lead auditor to perform substantive procedures to test the valuation of the inventory, including price testing at the stock keeping unit (SKU) level, for which the firm was instructed to test every invoice that makes up the SKU category selected for testing. The firm did not test every invoice that made up the selected SKU category, as instructed by the lead auditor. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not test, or test any controls over, the accuracy and completeness of certain data used to substantively test revenue, beyond obtaining evidence of payment for selected transactions. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1274", "Firm Names": "BDO Limited", "Inspection Year": "2025", "Country": "Hong Kong", "Global Network": "BDO International Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm used an external digital confirmation platform to confirm cash but did not perform procedures to support its reliance on this digital platform’s ability to maintain control over the confirmation requests and responses for the year under audit. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing a control that consisted of the issuer’s review of a sample of customer invoices to verify the pricing information reflected in the selected invoices. The firm did not identify and test any controls over the completeness of the population the issuer used to select invoices for review in the operation of this control. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm did not identify and test any controls over certain revenue. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing two other controls that consisted of the issuer’s review of a sample of customer invoices to verify the pricing and other information reflected in the selected invoices. The firm did not identify and test any controls over the completeness of the population the issuer used to select invoices for review in the operation of these controls. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing various controls that consisted of the issuer’s review and/or reconciliation of certain system-generated data and reports used to recognize revenue and the issuer’s follow-up on missing or duplicate data files. The firm did not identify and test any controls over the accuracy and completeness of the system-generated information used in the operation of these controls. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing various automated controls that consisted of the configuration of the information technology (IT) system to automatically perform certain functions based on pre-established parameters. The firm’s testing of these automated controls was not sufficient because the firm did not evaluate the program logic of these controls, beyond obtaining certain documentation from the vendor, or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing various automated controls that consisted of the configuration of the information technology (IT) system to automatically perform certain functions based on pre-established parameters. The firm’s testing of these automated controls was not sufficient because the firm did not evaluate the program logic of these controls, beyond obtaining certain documentation from the vendor, or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm did not identify and test controls that addressed certain risks of material misstatement related to certain revenue. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm did not identify and test any controls over the issuer’s evaluation of certain customer contract terms to ensure that the corresponding revenue was recognized in conformity with IFRS. (AS 2201.39) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiencies were identified with respect to the firm’s ICFR audit: \n• The firm selected for testing various other controls but did not perform any procedures to test, or test any controls over, the completeness of the populations from which it made its selections for testing. (AS 1105.10) \nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that additional material weaknesses existed that had not been previously identified. The issuer subsequently reflected these additional material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on ICFR to include these additional material weaknesses." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain revenue included performing a software-assisted analysis to test the relationships among revenue, accounts receivable, deferred revenue, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the firm’s testing of cash receipts data underlying the analysis. The firm also performed tests of details and substantive analytical procedures over the revenue using data from system-generated reports provided by the issuer. The following deficiency was identified: \n• With respect to the software-assisted analysis, the firm did not perform procedures to test the cash receipts data underlying the analysis. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain revenue included performing a software-assisted analysis to test the relationships among revenue, accounts receivable, deferred revenue, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the firm’s testing of cash receipts data underlying the analysis. The firm also performed tests of details and substantive analytical procedures over the revenue using data from system-generated reports provided by the issuer. The following deficiency was identified: \n• With respect to the tests of details and substantive analytical procedures, the firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of the data or system-generated reports it used to perform the procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain revenue included performing a software-assisted analysis to test the relationships among revenue, accounts receivable, deferred revenue, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the firm’s testing of cash receipts data underlying the analysis. The firm also performed tests of details and substantive analytical procedures over the revenue using data from system-generated reports provided by the issuer. The following deficiency was identified: \n• With respect to the tests of details and substantive analytical procedures, the firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of the data or system-generated reports it used to perform the procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether certain revenue was recognized in conformity with IFRS. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain other revenue consisted primarily of performing a software-assisted analysis to test the relationships among revenue, accounts receivable, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the appropriateness of the data underlying the analysis. The firm included data from certain non-revenue related accounts, including expense, liability, and non-cash general ledger accounts, in the analysis. The firm did not perform sufficient procedures to evaluate whether the data used in the analysis was appropriate because it did not evaluate the implications of including certain data from these non-revenue related accounts in the analysis on the sufficiency and appropriateness of the underlying data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1284", "Firm Names": "MANCERA, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified journal entries that met certain risk criteria but did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Prepayments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accrued Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accrued Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2516", "Firm Names": "Da Hua CPAs (Special General Partnership)", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer’s invoices did not include evidence that the issuer had met its performance obligations. The firm did not perform procedures to test revenue beyond obtaining all invoices and sending positive confirmations to customers to confirm all invoice amounts. Further, for confirmations for which it did not receive a response, the firm proposed, and the issuer recorded, an adjusting journal entry to reverse revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer’s invoices did not include evidence that the issuer had met its performance obligations. The firm did not perform procedures to test revenue beyond obtaining all invoices and sending positive confirmations to customers to confirm all invoice amounts. Further, for confirmations for which it did not receive a response, the firm proposed, and the issuer recorded, an adjusting journal entry to reverse revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not select journal entries and other adjustments for testing for evidence of possible material misstatement due to fraud. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded certain sales transactions in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. The firm did not evaluate the appropriateness of the issuer’s accounting treatment for, and presentation of, these transactions, including the consideration of certain contrary evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recorded certain sales transactions in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. The firm did not evaluate the appropriateness of the issuer’s accounting treatment for, and presentation of, these transactions, including the consideration of certain contrary evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5854", "Firm Names": "TAAD LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer recorded certain sales transactions in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. The firm did not evaluate the appropriateness of the issuer’s accounting treatment for, and presentation of, these transactions, including the consideration of certain contrary evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: \n• The firm did not perform any procedures to test certain other revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue sources. The following deficiency was identified: \n• The firm did not perform any procedures to test certain other revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "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. \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "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. \n• The firm did not perform procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "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. \n• The firm did not perform procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "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. \n• The firm did not perform procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "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. \n• The firm did not perform procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "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. \n• The firm did not perform procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6622", "Firm Names": "PKF Brisbane Audit", "Inspection Year": "2025", "Country": "Australia", "Global Network": "", "Inspection Report Date": "22-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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: \n• 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) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "286", "Firm Names": "Eide Bailly LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "726", "Firm Names": "Whitley Penn LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over a significant account. For one control, the firm did not evaluate the specific procedures that the control owner performed to determine that the significant account was appropriately recognized. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "726", "Firm Names": "Whitley Penn LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over a significant account. For one control, the firm did not evaluate the specific procedures that the control owner performed to determine that the significant account was appropriately recognized. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "726", "Firm Names": "Whitley Penn LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over a significant account. For another control, the firm did not identify and test any controls over the accuracy and completeness of the system-generated reports used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1309", "Firm Names": "Kesselman & Kesselman C.P.A.s", "Inspection Year": "2024", "Country": "Israel", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to perform procedures to test journal entries that met certain risk criteria, as determined by the principal auditor, to address a fraud risk related to management override of controls that was identified by the principal auditor. The firm did not identify and select journal entries and other adjustments for testing, as instructed by the principal auditor. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "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) \nUnrelated 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "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) \nUnrelated 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "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) \nUnrelated 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "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) \nUnrelated 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivables", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5341", "Firm Names": "Manohar Chowdhry & Associates", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Financial Statement Presentation", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer presented its financial statements in a condensed format. The firm did not identify and appropriately address that the financial statements, because they were condensed, did not present fairly in all material respects the issuer’s financial position, the results of its operations, and its cash flows in conformity with GAAP. (AS 2810.30 and .31) \nIn connection with our review, the issuer reevaluated the presentation of its financial statements and concluded that its financial statements should not have been presented in a condensed format. The issuer subsequently presented its financial statements in a non-condensed format in a restatement, 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Financial Statement Presentation", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer presented its financial statements in a condensed format. The firm did not identify and appropriately address that the financial statements, because they were condensed, did not present fairly in all material respects the issuer’s financial position, the results of its operations, and its cash flows in conformity with GAAP. (AS 2810.30 and .31) \nIn connection with our review, the issuer reevaluated the presentation of its financial statements and concluded that its financial statements should not have been presented in a condensed format. The issuer subsequently presented its financial statements in a non-condensed format in a restatement, 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reliability of external information it used to test certain revenue, beyond comparing certain of the information to an issuer-produced report that was itself based on that external information. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reliability of external information it used to test certain revenue, beyond comparing certain of the information to an issuer-produced report that was itself based on that external information. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• The firm did not evaluate whether the issuer was acting as a principal or as an agent for this revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• The firm did not evaluate whether the issuer was acting as a principal or as an agent for this revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• The firm did not perform procedures to test a revenue transaction it selected for testing, beyond performing procedures on the related cost of goods sold. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• The firm did not perform procedures to test a revenue transaction it selected for testing, beyond performing procedures on the related cost of goods sold. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• During the year, for another transaction, the issuer recognized certain revenue that had been previously deferred. The firm did not perform procedures, beyond a certain recalculation, to test the appropriateness of the recognition of this revenue in the current year and the continued deferral of the remaining revenue for this transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue and the related deferred revenue, the following deficiency was identified: \n• During the year, for another transaction, the issuer recognized certain revenue that had been previously deferred. The firm did not perform procedures, beyond a certain recalculation, to test the appropriateness of the recognition of this revenue in the current year and the continued deferral of the remaining revenue for this transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer reported stock-based compensation issued to related parties. The firm did not perform procedures to test this compensation, beyond obtaining certain issuer-produced calculations. (AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer reported stock-based compensation issued to related parties. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this compensation that are required by FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported stock-based compensation issued to related parties. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this compensation that are required by FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported stock-based compensation issued to related parties. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this compensation that are required by FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer reported a related party note receivable and related party loans payable. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this receivable and payable that are required by FASB ASC Topic 825, Financial Instruments, and FASB ASC Topic 860, Transfers and Servicing. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported a related party note receivable and related party loans payable. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this receivable and payable that are required by FASB ASC Topic 825, Financial Instruments, and FASB ASC Topic 860, Transfers and Servicing. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported a related party note receivable and related party loans payable. The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to this receivable and payable that are required by FASB ASC Topic 825, Financial Instruments, and FASB ASC Topic 860, Transfers and Servicing. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The firm did not perform procedures to test whether the issuer appropriately accounted for certain aspects of this transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The firm did not perform procedures to test the fair value of certain aspects of this transaction. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The issuer engaged an external specialist to determine the fair value of another aspect of this transaction. The firm did not perform procedures to test that fair value, beyond obtaining and reading the valuation reports prepared by the company specialist. Further, the firm did not perform any procedures to evaluate the work of the company specialist. (AS 1105.A6 - .A10; AS 2501.07) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The firm did not perform procedures to test the existence and completeness of certain aspects of this transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The firm did not identify and evaluate GAAP departures related to the issuer’s omission of, and inaccurate, disclosures related to this significant transaction. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer reported a significant transaction. The following deficiency was identified: \n• The firm did not identify and evaluate GAAP departures related to the issuer’s omission of, and inaccurate, disclosures related to this significant transaction. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "41", "Description in the Firm's Inspection Report": "The issuer reported several types of revenue. The following deficiency was identified: \n• The firm did not perform any substantive procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of revenue. The following deficiency was identified: \n• For one type of revenue, the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations before recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer reported several types of revenue. The following deficiency was identified: \n• For one type of revenue, the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations before recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of revenue. The following deficiency was identified: \n• For other types of revenue, the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations, beyond obtaining evidence of cash receipts or an issuer\u0002prepared schedule in certain instances. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer reported several types of revenue. The following deficiency was identified: \n• For other types of revenue, the firm did not perform procedures to evaluate whether the issuer satisfied its performance obligations, beyond obtaining evidence of cash receipts or an issuer\u0002prepared schedule in certain instances. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate the classification of deferred revenue as current or non-current. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to revenue and deferred revenue that are required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to revenue and deferred revenue that are required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to revenue and deferred revenue that are required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate GAAP departures related to the issuer’s omission of disclosures related to revenue and deferred revenue that are required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting entries for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate how the issuer tested its intangible assets for potential impairment as events or changes in circumstances existed that indicated that the carrying amount of the intangible assets may not be recoverable. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6797", "Firm Names": "Bush & Associates CPA LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting entries for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Related Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Related Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate departures from GAAP related to: \n• the issuer’s method used to record estimated expenses associated with these transactions; (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Related Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate departures from GAAP related to: \n• the issuer’s omission of certain disclosures required under GAAP for these transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Related Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate departures from GAAP related to: \n• the issuer’s omission of certain disclosures required under GAAP for these transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "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: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a significant transaction. The following deficiency was identified: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a significant transaction. The following deficiency was identified: \n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6816", "Firm Names": "Elkana Amitai CPA", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "8-Dec-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a significant transaction. The following deficiency was identified: \n• The firm did not evaluate the appropriateness of certain other aspects of the issuer’s accounting for this transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not evaluate whether the issuer accounted for certain aspects of these accounts in conformity with GAAP. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not evaluate whether the issuer accounted for certain aspects of these accounts in conformity with GAAP. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not evaluate whether the method used to develop an estimate related to one of the significant accounts was in conformity with GAAP and appropriate for the nature of the account, taking into account the firm’s understanding of the issuer and its environment. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of certain significant assumptions the issuer developed and used to estimate the value of the significant accounts. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of another significant assumption the issuer used to estimate one of the significant accounts, beyond comparing it to external data without evaluating the significant difference between the external data and the assumption used by the issuer. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not perform procedures to demonstrate that it had a reasonable basis for an expectation it developed to evaluate the reasonableness of a significant assumption used by the issuer to estimate the significant accounts. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not perform procedures to test the reliability of certain information it used to develop its expectation of the significant assumption. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not perform procedures to test the reliability of certain information it used to develop its expectation of the significant assumption. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not perform sufficient procedures to test the relevance of certain information used by the issuer to develop an estimate related to the significant accounts, because it did not consider certain factors related to the information. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not perform sufficient procedures to test the relevance of certain information used by the issuer to develop an estimate related to the significant accounts, because it did not consider certain factors related to the information. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain required disclosures related to one of the significant accounts. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "29", "Firm Names": "Sassetti LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported certain significant accounts. The following deficiency was identified: \n• The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain required disclosures related to one of the significant accounts. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not perform any substantive procedures to evaluate the issuer’s contract terms with its customers to determine whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenues from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not perform any substantive procedures to evaluate the issuer’s contract terms with its customers to determine whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenues from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not sufficiently evaluate the issuer’s identification of performance obligations, because it did not evaluate (1) the issuer’s basis for concluding that the goods or services, or bundles thereof, represented single or multiple performance obligations including any ‘series’ performance obligations; and (2) whether any performance obligations met the criteria for recognition over time. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not sufficiently evaluate the issuer’s identification of performance obligations, because it did not evaluate (1) the issuer’s basis for concluding that the goods or services, or bundles thereof, represented single or multiple performance obligations including any ‘series’ performance obligations; and (2) whether any performance obligations met the criteria for recognition over time. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not perform any procedures to test whether performance obligations had been satisfied before revenue was recognized for all but four transactions selected for testing. (AS 2301.08 and .13) For two of these transactions, the firm did not test, or test any controls over, the completeness and accuracy of issuer-produced information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not perform any procedures to test whether performance obligations had been satisfied before revenue was recognized for all but four transactions selected for testing. (AS 2301.08 and .13) For two of these transactions, the firm did not test, or test any controls over, the completeness and accuracy of issuer-produced information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm did not perform any procedures to test whether performance obligations had been satisfied before revenue was recognized for all but four transactions selected for testing. (AS 2301.08 and .13) For two of these transactions, the firm did not test, or test any controls over, the completeness and accuracy of issuer-produced information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm’s sample was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowance for incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm’s sample was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowance for incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm’s sample was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowance for incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer recognized revenue from certain contracts as either single performance obligations or multiple performance obligations satisfied at a point in time. The firm’s substantive procedures to test revenue consisted of selecting a sample of transactions for testing. The following deficiency was identified: \n• The firm’s sample was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowance for incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for certain revenue as the principal rather than as an agent was appropriate. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for certain revenue as the principal rather than as an agent was appropriate. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm’s approach to testing accounts receivable included sending a positive confirmation request to the issuer’s largest customer. The firm sent the confirmation request to a respondent who was an employee of the issuer who also performed contract work for the customer, without considering the respondent’s objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The firm’s approach to testing accounts receivable included sending a positive confirmation request to the issuer’s largest customer. The firm sent the confirmation request to a respondent who was an employee of the issuer who also performed contract work for the customer, without considering the respondent’s objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm also traced one invoice due from another customer to subsequent cash receipts. The firm did not perform any procedures to test the remaining accounts receivable balance. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm also traced one invoice due from another customer to subsequent cash receipts. The firm did not perform any procedures to test the remaining accounts receivable balance. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, events or changes in circumstances existed indicating that the carrying value of the significant assets may not be recoverable. The firm did not evaluate whether the issuer performed an assessment of these assets for possible impairment. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "During the year, events or changes in circumstances existed indicating that the carrying value of the significant assets may not be recoverable. The firm did not evaluate whether the issuer performed an assessment of these assets for possible impairment. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer developed an estimate related to certain other of these significant assets. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform any procedures, beyond inquiry, to evaluate the appropriateness of the issuer’s classification of certain significant assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer developed an estimate related to certain other of these significant assets. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform any procedures, beyond inquiry, to evaluate the appropriateness of the issuer’s classification of certain significant assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer developed an estimate related to certain other of these significant assets. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The following deficiency was identified: \n• The firm did not sufficiently evaluate whether the issuer’s method used to determine an estimate related to the significant assets was in conformity with GAAP because it did not evaluate whether the method considered a certain significant assumption. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer developed an estimate related to certain other of these significant assets. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate whether the issuer had a reasonable basis for using a certain significant assumption used to develop an estimate related to the significant assets. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer developed an estimate related to certain other of these significant assets. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The following deficiency was identified: \n• The firm did not test, or test any controls over, the accuracy and completeness of certain data used to determine the estimate. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "314", "Firm Names": "Meaden & Moore, Ltd.", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "To identify and select journal entries for testing, the firm identified fraud characteristics and obtained a list of all journal entries with these characteristics. The firm did not perform sufficient procedures to test those journal entries because it examined the underlying support for only certain of the journal entries, without having an appropriate rationale for limiting its testing to those certain journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "400", "Firm Names": "Hacker, Johnson & Smith PA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer’s accounting for, and disclosure of, certain liabilities were in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Revenue and Related Accounts area and also identified certain of the deficiencies below.\nThe firm did not perform any test of details to address the fraud risk related to the occurrence of certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Revenue and Related Accounts area and also identified certain of the deficiencies below.\nThe firm did not perform any test of details to address the fraud risk related to the occurrence of certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Revenue and Related Accounts area and also identified certain of the deficiencies below.\nThe firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain system-generated reports that it used to test certain other revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Revenue and Related Accounts area and also identified certain of the deficiencies below.\nThe firm did not perform any substantive procedures to test deferred revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain investments was to develop an independent expectation. The following deficiency was identified. \n• The firm did not perform procedures to demonstrate that it had a reasonable basis for the method and assumptions it used, including taking into account (1) the requirements of certain elements of the applicable financial reporting framework and (2) its understanding of the issuer’s process, including the issuer’s use of a flat rate for impairment, so that its independent expectation considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain investments was to develop an independent expectation. The following deficiency was identified. \n• The firm did not perform procedures to demonstrate that it had a reasonable basis for the method and assumptions it used, including taking into account (1) the requirements of certain elements of the applicable financial reporting framework and (2) its understanding of the issuer’s process, including the issuer’s use of a flat rate for impairment, so that its independent expectation considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain investments was to develop an independent expectation. The following deficiency was identified. \n• The firm did not evaluate the significant difference between its independent expectation and the issuer’s recorded impairment, beyond concluding that the issuer’s recorded impairment was more conservative. (AS 2501.26; AS 2810.13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain investments was to develop an independent expectation. The following deficiency was identified. \n• The firm did not evaluate the significant difference between its independent expectation and the issuer’s recorded impairment, beyond concluding that the issuer’s recorded impairment was more conservative. (AS 2501.26; AS 2810.13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 235, Notes to Financial Statements. (AS 2810.30 and .31) \nUnrelated to our review, the issuer reevaluated its disclosures for investments and determined that a disclosure was omitted. The issuer subsequently corrected this omission in a restatement of its financial statements, and the firm issued an audit report on the issuer’s restated financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 235, Notes to Financial Statements. (AS 2810.30 and .31) \nUnrelated to our review, the issuer reevaluated its disclosures for investments and determined that a disclosure was omitted. The issuer subsequently corrected this omission in a restatement of its financial statements, and the firm issued an audit report on the issuer’s restated financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included selecting a sample of revenue transactions for testing. The firm’s sample was not representative of the population because the firm did not select any transactions for one type of revenue, without performing procedures to determine whether all revenue transactions were homogeneous based on their characteristics. (AS 2315.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s disclosures were in compliance with the requirements of FASB Topic ASC 606, Revenue from Contracts with Customers, to disaggregate revenue into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s disclosures were in compliance with the requirements of FASB Topic ASC 606, Revenue from Contracts with Customers, to disaggregate revenue into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not evaluate the reasonableness of a certain significant assumption developed by the company’s specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not evaluate whether this was an investment in a variable interest entity that should have been consolidated by the issuer in accordance with FASB ASC Topic 810, Consolidation. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not evaluate whether this was an investment in a variable interest entity that should have been consolidated by the issuer in accordance with FASB ASC Topic 810, Consolidation. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not evaluate whether a certain related asset was properly classified as a current asset in accordance with FASB ASC Topic 210, Balance Sheet. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not evaluate whether a certain related asset was properly classified as a current asset in accordance with FASB ASC Topic 210, Balance Sheet. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of an equity investment. The firm’s approach for substantively testing the fair value of the investment was to test the issuer’s process, and the firm used an auditor-engaged specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiency was identified. \n• The firm did not perform procedures to test the issuer’s conclusion that no allowance was necessary for the related asset. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of inventory costing for one of the issuer’s components. The firm did not identify that the third party did not evaluate, and the firm did not perform procedures to evaluate, the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2605", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of inventory costing for one of the issuer’s components. The firm did not identify that the third party did not evaluate, and the firm did not perform procedures to evaluate, the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2605", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of inventory costing for one of the issuer’s components. The firm did not identify that the third party did not evaluate, and the firm did not perform procedures to evaluate, the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test the operating effectiveness of a control related to the review of the reserves for slow-moving and obsolete inventories for three of the issuer’s components. The firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test the costing of inventory at one of the issuer’s components by comparing inventory costs to vendor invoices, payroll records, labor hours, and machine hours. The firm did not perform these substantive procedures. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of the allowance for doubtful accounts for one of the issuer’s components. The firm did not identify that the third party did not test, and the firm did not perform procedures to test, the aspect of the control that addressed the reasonableness of the allowance for doubtful accounts. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2605", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of the allowance for doubtful accounts for one of the issuer’s components. The firm did not identify that the third party did not test, and the firm did not perform procedures to test, the aspect of the control that addressed the reasonableness of the allowance for doubtful accounts. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2605", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to use, and evaluate the quality and effectiveness of, the work performed by a third party working under the direction of management as evidence regarding the operating effectiveness of a control related to the review of the allowance for doubtful accounts for one of the issuer’s components. The firm did not identify that the third party did not test, and the firm did not perform procedures to test, the aspect of the control that addressed the reasonableness of the allowance for doubtful accounts. (AS 2201.44; AS 2605.24 and .26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to evaluate the reliability of certain external information used by the issuer in its qualitative assessment of impairment of a certain long-lived asset. The firm was unable to evaluate the reliability of this information. Instead, the firm compared the information used by the issuer to other information independently obtained by the firm that it believed was comparable to information used by the issuer. The firm, however, did not perform any procedures to evaluate the reliability of the information it independently obtained. Further, the firm did not perform procedures to evaluate the relevance of this information, beyond one consideration. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to evaluate the reliability of certain external information used by the issuer in its qualitative assessment of impairment of a certain long-lived asset. The firm was unable to evaluate the reliability of this information. Instead, the firm compared the information used by the issuer to other information independently obtained by the firm that it believed was comparable to information used by the issuer. The firm, however, did not perform any procedures to evaluate the reliability of the information it independently obtained. Further, the firm did not perform procedures to evaluate the relevance of this information, beyond one consideration. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm received a positive confirmation response from a financial institution indicating that one of the cash amounts confirmed was a term deposit with an original maturity greater than three months. The firm did not perform any procedures to evaluate whether the issuer properly presented this amount as cash and cash equivalents in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "To test accounts receivable and certain other revenue, the firm sent positive confirmation requests to the issuer’s customers. The firm did not perform procedures, beyond inquiry, to evaluate the nature of exceptions in one returned confirmation. (AS 2310.33)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3305", "Firm Names": "Forvis Mazars Certified Public Accountants", "Inspection Year": "2025", "Country": "China", "Global Network": "", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm received positive confirmation responses from financial institutions indicating that certain of the cash amounts confirmed were term deposits with original maturities greater than three months. The firm did not perform any procedures to evaluate whether the issuer properly presented these amounts as cash and cash equivalents in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing a control that consisted of management’s review and approval of certain models used by the issuer to estimate the valuation for the collective components. The firm did not (1) identify and test any controls over the accuracy and completeness of certain information used in the performance of the control (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing a control that consisted of management’s review and approval of certain models used by the issuer to estimate the valuation for the collective components. The firm did not (2) evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the models (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing a control that consisted of management’s review and approval of certain models used by the issuer to estimate the valuation for the collective components. The firm did not (2) evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the models (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing a control that consisted of management’s review and approval of certain models used by the issuer to estimate the valuation for the collective components. The firm did not (3) perform any procedures to test, or test any controls over, the completeness of the population of models from which it made its selections to test this control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not identify and test any controls over certain other models used by the issuer to estimate the valuation for the collective components. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing other controls that consisted of the issuer’s (1) review and validation of the methodologies used to develop certain assumptions used by the issuer to estimate the valuation for the collective components and (2) review and approval of the resulting assumptions. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing other controls that consisted of the issuer’s (1) review and validation of the methodologies used to develop certain assumptions used by the issuer to estimate the valuation for the collective components and (2) review and approval of the resulting assumptions. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not identify and test any controls over the determination of certain assumptions used by the issuer to estimate the valuations for certain components. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of certain other assumptions used by the issuer to estimate the valuations for the components. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of certain other assumptions used by the issuer to estimate the valuations for the components. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not identify and test any control over the determination of an input used by the issuer to estimate the valuation for another component. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of another input used by the issuer to estimate the valuation for the component. The firm did not (1) identify and test any controls over the accuracy and completeness of certain data used in the operation of the control (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of another input used by the issuer to estimate the valuation for the component. The firm did not (2) evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the input. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of another input used by the issuer to estimate the valuation for the component. The firm did not (2) evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the input. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of an element of the component, including the reasonableness of the assumptions and methodology used to estimate the valuation for the element. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the assumptions and methodology used to estimate the valuation for the element. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm selected for testing another control that consisted of the issuer’s review of an element of the component, including the reasonableness of the assumptions and methodology used to estimate the valuation for the element. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the assumptions and methodology used to estimate the valuation for the element. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The sample sizes the firm used in its substantive procedures to test the reasonableness of certain assumptions used by the issuer to estimate the valuation for a component were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to certain of the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm’s approach for testing the valuation for the component was to limit its substantive testing to certain balances over a specified threshold. The firm did not perform any procedures to substantively test the balances below the threshold. (AS 2315.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the reasonableness of certain assumptions used by the issuer to estimate the valuation for the component because it did not evaluate certain exceptions identified while testing the assumptions. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the reasonableness of certain assumptions used by the issuer to estimate the valuation for the component because it did not evaluate certain exceptions identified while testing the assumptions. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the reasonableness of certain assumptions used by the issuer to estimate the valuation for the component because it did not evaluate certain exceptions identified while testing the assumptions. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The significant estimate consisted of multiple components that were valued by the issuer using various inputs, assumptions, models, and methodologies. With respect to the components of the significant estimate, the following deficiency was identified: \n• The firm did not perform procedures to evaluate whether the issuer’s presentation and disclosure and valuation for a component was in conformity with the relevant financial reporting framework. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6466", "Firm Names": "PwC Contadores y Auditores SAS", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "20-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Financial Instruments", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the completeness of certain financial instruments. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1350", "Firm Names": "PricewaterhouseCoopers Reviseurs d'Entreprises", "Inspection Year": "2024", "Country": "Belgium", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to test two controls over manual journal entries that consisted of the issuer’s review and approval of the journal entries. The firm did not sufficiently test the design and operating effectiveness of these controls because it did not test certain attributes of the controls related to (1) an additional review of journal entries created or posted by the controller and (2) the attachment of supporting documentation to all journal entry vouchers to facilitate the control owner’s review of the journal entries. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1350", "Firm Names": "PricewaterhouseCoopers Reviseurs d'Entreprises", "Inspection Year": "2024", "Country": "Belgium", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to test two controls over manual journal entries that consisted of the issuer’s review and approval of the journal entries. The firm did not sufficiently test the design and operating effectiveness of these controls because it did not test certain attributes of the controls related to (1) an additional review of journal entries created or posted by the controller and (2) the attachment of supporting documentation to all journal entry vouchers to facilitate the control owner’s review of the journal entries. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm selected for testing certain controls over long-lived assets that consisted of the issuer’s reviews of (1) fixed asset register reconciliations, (2) asset status reports, and (3) the LOM plans and technical reports developed/compiled by the company’s specialists. The firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow-up and the procedures to determine whether those items were appropriately resolved. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm’s approach for substantively testing long-lived assets associated with the issuer’s reserve estimates and LOM plans, as developed by the company’s specialists, was to test the issuer’s process. The following deficiency was identified: \n• The firm did not (1) test the accuracy and completeness of non-financial data prepared by the issuer and (2) evaluate the relevance and reliability of external non-financial data, all of which were used by the company’s specialist to develop the LOM plan assumptions, which were used to compute depreciation expense. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm’s approach for substantively testing long-lived assets associated with the issuer’s reserve estimates and LOM plans, as developed by the company’s specialists, was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the LOM plans, which were considered significant assumptions by the firm, developed by the company’s specialists, and used to compute depreciation expense. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm’s approach for substantively testing long-lived assets associated with the issuer’s reserve estimates and LOM plans, as developed by the company’s specialists, was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of another significant non-financial assumption developed by the issuer and used by the company’s specialists to develop the reserve estimates beyond evaluating its consistency with the issuer’s budget. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm’s approach for substantively testing long-lived assets associated with the issuer’s reserve estimates and LOM plans, as developed by the company’s specialists, was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate whether the methods used by the company’s specialists to develop the reserve estimates and LOM plans were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework. (AS 1105.A8c) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Long-Lived Assets but did not identify the deficiency below.\nThe issuer engaged external specialists to review and compile technical reports on its mineral reserves and resources (“reserve estimates”) and develop a life-of-mine (LOM) plan for each mining site, which were then used in the (1) calculation of depreciation and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions prepared by the issuer and/or obtained from external sources to develop the reserve estimates and LOM plans. \nThe firm’s approach for substantively testing long-lived assets associated with the issuer’s reserve estimates and LOM plans, as developed by the company’s specialists, was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to test the accuracy of the dates in which long-lived assets were placed in service and the locations of those assets, which were inputs used to compute depreciation expense. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm sent confirmation requests via email to contacts at financial institutions for certain of the issuer’s bank accounts as part of its substantive testing of cash and cash equivalents, and the email address for each contact was provided by the issuer. The firm received the responses for all confirmation requests sent via email. The following deficiency was identified:\n• The firm did not perform procedures to determine whether the confirmation requests were directed to third parties who were knowledgeable about the information to be confirmed. (AS 2310.26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1368", "Firm Names": "BDO South Africa Inc.", "Inspection Year": "2024", "Country": "South Africa", "Global Network": "BDO International Limited", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "The firm sent confirmation requests via email to contacts at financial institutions for certain of the issuer’s bank accounts as part of its substantive testing of cash and cash equivalents, and the email address for each contact was provided by the issuer. The firm received the responses for all confirmation requests sent via email. The following deficiency was identified:\n• 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain of these significant assumptions developed by one of the company’s specialists, beyond reading the company’s specialist’s valuation reports, inspecting certain contracts, and inquiring of \nmanagement. Further, the firm did not perform any procedures, beyond inquiring of management, with respect to its use of this company’s specialist’s work as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded an investment at fair value that was determined, in part, based on assumptions that were developed by the company’s specialists. The firm’s approach for testing the fair value of the investment was to develop an independent expectation of the estimate using certain significant assumptions that were developed by the company’s specialists. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions developed by two of the company’s specialists, beyond reading and comparing the two company’s specialists’ valuation reports, inspecting certain contracts, and inquiring of management. Further, the firm did not perform procedures to evaluate the work of the company’s specialists, beyond inquiries of the company’s specialists and certain comparisons to issuer documentation. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer's accounting for this investment was appropriate because the firm did not determine how the issuer evaluated all relevant factors, including certain contrary evidence related to one of the factors. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer's accounting for this investment was appropriate because the firm did not determine how the issuer evaluated all relevant factors, including certain contrary evidence related to one of the factors. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and determined the fair value of certain acquired intangible assets using forecasted revenue, which the firm identified as a significant assumption. The firm did not evaluate the reliability of certain historical revenue data from the acquiree that was used to develop these revenue forecasts. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and determined the fair value of certain acquired intangible assets using forecasted revenue, which the firm identified as a significant assumption. The firm did not evaluate the reliability of certain historical revenue data from the acquiree that was used to develop these revenue forecasts. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond inquiry, to evaluate the issuer’s conclusions that quantitative impairment assessments for certain goodwill and intangible assets were not necessary including how the issuer evaluated certain relevant events or changes in circumstances, of which the firm was aware, that indicated that these assets may not be recoverable. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6413", "Firm Names": "ZH CPA, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "10-Nov-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond inquiry, to evaluate the issuer’s conclusions that quantitative impairment assessments for certain goodwill and intangible assets were not necessary including how the issuer evaluated certain relevant events or changes in circumstances, of which the firm was aware, that indicated that these assets may not be recoverable. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control. As a result of the deficiencies, the firm’s testing of this IT-dependent manual control was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control.\n· The firm selected for testing a review control over user access. The firm did not evaluate the specific procedures that the control owners performed to determine whether the granted access continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control.\n· The firm selected for testing a review control over user access. The firm did not evaluate the specific procedures that the control owners performed to determine whether the granted access continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control.\n· The firm selected for testing a change management control. The firm did not test, or test any controls over, the completeness of the change management population used by the firm to select items for testing the change management control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to calculate the ACL. The firm selected for testing an IT-dependent management review control over the valuation of the ACL that was dependent upon (1) the effectiveness of IT general controls (ITGCs) over this system and (2) the accuracy and completeness of reports generated from this system used in the operation of the control.\n· The firm did not identify and test any controls over the accuracy and completeness of the reports generated from this IT system used in the performance of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform substantive procedures to test the aggregate appraisal value of the land securing the loans, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "171", "Firm Names": "Horne LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to appraise the value of land that collateralized certain of the issuer’s loans. The issuer applied adjustments for project percentage of completion and selling cost estimates to the appraised land value to determine the specific reserve to apply to these loans.\nThe firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to the estimates for percentages of completion for the construction projects and selling cost adjustments. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test one significant account, beyond tracing amounts to the general ledger. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test one significant account, beyond tracing amounts to the general ledger. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for a second significant account was in conformity with applicable GAAP. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for a second significant account was in conformity with applicable GAAP. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm selected samples to test certain other significant accounts. The sample sizes the firm used to perform these substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample sizes, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm selected samples to test certain other significant accounts. The sample sizes the firm used to perform these substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample sizes, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm selected samples to test certain other significant accounts. The sample sizes the firm used to perform these substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample sizes, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm selected samples to test certain other significant accounts. The sample sizes the firm used to perform these substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample sizes, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Balance Sheet Account", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain changes in a balance sheet account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Balance Sheet Account", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer appropriately determined the valuation of this account, including consideration of contradictory evidence. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Balance Sheet Account", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer appropriately determined the valuation of this account, including consideration of contradictory evidence. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "217", "Firm Names": "Berkower LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Financial Reporting", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether certain adjustments were in conformity with applicable GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "263", "Firm Names": "Rehmann Robson LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The firm selected an investment security for testing the fair value of certain investment securities. The firm did not perform any procedures to test the fair value of the remaining population of these investment securities. (AS 1105.27; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "263", "Firm Names": "Rehmann Robson LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm selected an investment security for testing the fair value of certain investment securities. The firm did not perform any procedures to test the fair value of the remaining population of these investment securities. (AS 1105.27; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "281", "Firm Names": "Nichols, Cauley & Associates, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or in the alternative, test any controls over, the accuracy and completeness of certain issuer-produced reports that it used to substantively test certain revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "910", "Firm Names": "Rodefer Moss & Co, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer’s recognition of certain revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers, because the firm did not evaluate certain requirements of FASB ASC Topic 606. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "910", "Firm Names": "Rodefer Moss & Co, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to this revenue, as required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "910", "Firm Names": "Rodefer Moss & Co, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to this revenue, as required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "910", "Firm Names": "Rodefer Moss & Co, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test a significant estimate, beyond inquiry, including consideration of certain contrary evidence. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "910", "Firm Names": "Rodefer Moss & Co, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test a significant estimate, beyond inquiry, including consideration of certain contrary evidence. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of customer contracts for proper revenue recognition and identified a significant deficiency related to this control. The firm identified and tested a compensating control that it believed would mitigate the deficiency, which consisted of another review control over customer contracts. The firm did not evaluate the review procedures that the control owner performed to be able to conclude that the compensating control mitigated the identified significant deficiency. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19. 23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain information used in its substantive testing of revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2416", "Firm Names": "Grant Thornton Bharat LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain information used in its substantive testing of revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2952", "Firm Names": "T R CHADHA & CO LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test certain revenue. The firm did not perform procedures to test whether the issuer satisfied its performance obligations prior to the recognition of this revenue for the sample of transactions, beyond inspecting certain issuer-prepared reports and customer invoices. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2952", "Firm Names": "T R CHADHA & CO LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test certain revenue. The firm did not perform procedures to test whether the issuer satisfied its performance obligations prior to the recognition of this revenue for the sample of transactions, beyond inspecting certain issuer-prepared reports and customer invoices. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5020", "Firm Names": "RW Group LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the reserve for excess and obsolete inventory was to develop an independent expectation. The firm did not perform any procedures to demonstrate it had a reasonable basis for certain assumptions it developed. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5020", "Firm Names": "RW Group LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not select any journal entries and other adjustments for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not identify and evaluate a departure from GAAP related to the method used by the issuer to estimate the value of the significant account, which was not in conformity with the applicable financial reporting framework. (AS 2501.10; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not identify and evaluate a departure from GAAP related to the method used by the issuer to estimate the value of the significant account, which was not in conformity with the applicable financial reporting framework. (AS 2501.10; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not identify and evaluate a departure from GAAP related to the method used by the issuer to estimate the value of the significant account, which was not in conformity with the applicable financial reporting framework. (AS 2501.10; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions, because it did not evaluate significant differences between its expectations and the assumptions. Further, for one significant assumption, the firm did not demonstrate it had a reasonable basis for its expectation of the assumption. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of another significant assumption, including taking into account the issuer’s intent and ability to carry out the assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of another significant assumption, including taking into account the issuer’s intent and ability to carry out the assumption. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the relevance and/or reliability of certain external data and information used in its substantive testing of the significant assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used various assumptions to estimate the value of a significant account. The firm’s approach for substantively testing the value of this account was to test the issuer’s process and develop expectations of certain significant assumptions, which it compared to the respective assumptions used by the issuer. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the relevance and/or reliability of certain external data and information used in its substantive testing of the significant assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6398", "Firm Names": "RH CPA", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "23-Oct-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Related Party transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm used a positive confirmation request to test a related party transaction. The firm did not maintain control over the confirmation request and response through direct communication with the intended recipient of the confirmation request, because the issuer sent and received the request. (AS 2310.28)\n[This citation refers to AS 2310, The Confirmation Process, which was in effect for this audit. This standard was replaced by AS 2310, The Auditor’s Use of Confirmation, which became effective for audits of financial statements for fiscal years ending on or after June 15, 2025.]" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "200", "Firm Names": "Haskell & White LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and related accounts. In its testing of controls over revenue and related accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the audit deficiencies related to the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "200", "Firm Names": "Haskell & White LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm identified control deficiencies related to change management for one of the issuer’s IT systems. The firm did not evaluate the severity of these control deficiencies, individually or in combination, to determine whether they represented a material weakness, beyond identifying a mitigating factor that did not address the risk that changes could be migrated into production without appropriate approval and testing. (AS 2201.62)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "200", "Firm Names": "Haskell & White LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain system change reports to select its samples for testing certain ITGCs for these systems but did not test, or test any controls over, the completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "200", "Firm Names": "Haskell & White LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm designed certain of its substantive procedures to test certain revenue as dual-purpose tests. The firm performed its substantive procedures using the sample size it determined for its control testing. This sample size was too small to provide sufficient appropriate audit evidence for the substantive procedure because the firm did not use the larger of the sample sizes that would otherwise have been designed for the two separate purposes. (AS 2315.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report. \nThe firm selected for testing a control that consisted of the issuer’s review of the financial and non-financial assumptions, including the reserves and resources estimates reflected in the technical report, that were used by the issuer to estimate the fair value of the acquired asset and assumed liability. This control used the remodeled reserves and resources estimates developed by the company’s employed specialists. The following deficiency was identified: \n• The firm did not identify and test any controls over the accuracy and completeness of the reserves and resources estimates remodeled by the company’s employed specialists that were used in the operation of this control, including the (1) accuracy and completeness of issuer-produced non-financial data and (2) relevance and reliability of external data, all of which were utilized by the company’s employed specialists to remodel the reserves and resources estimates. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report. \nThe firm selected for testing a control that consisted of the issuer’s review of the financial and non-financial assumptions, including the reserves and resources estimates reflected in the technical report, that were used by the issuer to estimate the fair value of the acquired asset and assumed liability. This control used the remodeled reserves and resources estimates developed by the company’s employed specialists. The following deficiency was identified: \n• The firm did not identify that the control owners did not (1) evaluate the reasonableness of the financial and non-financial assumptions developed by the issuer and/or the company’s employed specialists and used by the company’s employed specialists to remodel the reserves and resources estimates and (2) evaluate the appropriateness of the methods used by company’s employed specialists to remodel the reserves and resources estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report. \nThe firm selected for testing a control that consisted of the issuer’s review of the financial and non-financial assumptions, including the reserves and resources estimates reflected in the technical report, that were used by the issuer to estimate the fair value of the acquired asset and assumed liability. This control used the remodeled reserves and resources estimates developed by the company’s employed specialists. The following deficiency was identified: \n• The firm did not identify that the control owners did not (1) evaluate the reasonableness of the financial and non-financial assumptions developed by the issuer and/or the company’s employed specialists and used by the company’s employed specialists to remodel the reserves and resources estimates and (2) evaluate the appropriateness of the methods used by company’s employed specialists to remodel the reserves and resources estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the reserves and resources estimates, as reflected in the technical report, which were considered by the firm to be significant assumptions used by the issuer to estimate the fair value of the acquired asset and assumed \nliability, beyond obtaining and reading the technical report prepared by the acquired company’s external specialists. Further, the firm did not perform procedures to evaluate the work of the company’s employed specialists. (AS 1105.A6 -.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and used various significant assumptions, including reserves and resources estimates from a report (“technical report”) prepared by external specialists engaged by the acquired company, to estimate and record the fair value of an acquired asset and assumed liability. The issuer utilized internal specialists (the “company’s employed specialists”) to assess the reasonableness of the reserves and resources estimates reflected in the technical report by remodeling the estimates and comparing the results to the estimates reflected in the technical report.\nThe firm’s approach for substantively testing the fair value of the acquired asset and assumed liability from the business combination was to test the issuer’s process. The following deficiency was identified: \n• The firm did not sufficiently evaluate the reasonableness of certain other significant assumptions used by the issuer to estimate the fair value of the acquired asset because it limited its procedures to comparing the assumptions to those of similar companies or external \nvendor quotes. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged specialists to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions, deemed significant by the firm, to develop the reserve estimates in the reserve report. \nThe firm selected for testing a control that consisted of the issuer’s review and approval of the final reserve estimates provided by the company’s specialists. The firm did not identify, when testing the design of this control, that the control owners did not (1) evaluate the reasonableness of the non-financial assumptions developed by the issuer and/or the company’s specialists and used by the company’s specialists to develop the reserve estimates and (2) evaluate the appropriateness of the methods used by company’s specialists to develop the reserve estimates. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged specialists to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions, deemed significant by the firm, to develop the reserve estimates in the reserve report. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the significant non-financial assumptions developed by the issuer and/or the company’s specialists and used by the company’s specialists to develop the reserve estimates. (AS 1105.A8b; AS 2501.16) \n• The firm did not evaluate whether the methods used by the company’s specialists to develop the reserve estimates were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, beyond inquiry of the methods used with the company’s specialists. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged specialists to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions, deemed significant by the firm, to develop the reserve estimates in the reserve report. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the significant non-financial assumptions developed by the issuer and/or the company’s specialists and used by the company’s specialists to develop the reserve estimates. (AS 1105.A8b; AS 2501.16) \n• The firm did not evaluate whether the methods used by the company’s specialists to develop the reserve estimates were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, beyond inquiry of the methods used with the company’s specialists. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer engaged specialists to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The company’s specialists used financial and non-financial data and assumptions, deemed significant by the firm, to develop the reserve estimates in the reserve report. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The following deficiency was identified: \n• The firm did not evaluate the reasonableness of the significant non-financial assumptions developed by the issuer and/or the company’s specialists and used by the company’s specialists to develop the reserve estimates. (AS 1105.A8b; AS 2501.16) \n• The firm did not evaluate whether the methods used by the company’s specialists to develop the reserve estimates were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, beyond inquiry of the methods used with the company’s specialists. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "271", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control over revenue recognition that consisted of the issuer’s review of customer contracts. The firm did not perform procedures to test, or test any controls over, the completeness of an issuer-prepared report of new and modified contracts from which it made its selections for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n• The firm selected for testing a control over the disclosure of certain revenue that consisted of the issuer’s review and approval of its financial statement disclosures. The firm did not identify and test any controls over the accuracy of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n• The firm used certain issuer-prepared data to substantively test one of the issuer’s revenue disclosures but did not perform any procedures to test, or test any controls over, the accuracy of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The firm selected for testing a control over the valuation of the goodwill and indefinite lived intangible assets that consisted of the issuer’s review of key assumptions used in the valuation models. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain assumptions used in the valuation models, including the relevance of the comparable companies used to develop those assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The firm selected for testing a control over the valuation of the goodwill and indefinite lived intangible assets that consisted of the issuer’s review of key assumptions used in the valuation models. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain assumptions used in the valuation models, including the relevance of the comparable companies used to develop those assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding whether the goodwill and indefinite lived intangible assets were impaired, because the auditor-employed specialist did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the valuation models, including the relevance of the comparable companies used to develop certain of those assumptions. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding whether the goodwill and indefinite lived intangible assets were impaired, because the auditor-employed specialist did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the valuation models, including the relevance of the comparable companies used to develop certain of those assumptions. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The auditor-employed specialist did not perform procedures to evaluate the reasonableness of certain significant assumptions used in the valuation models beyond reperforming the sensitivity analysis prepared by the company’s specialist. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The auditor-employed specialist did not perform procedures to evaluate the relevance of the comparable companies used to develop these significant assumptions beyond determining whether those companies operated in the same industry as the issuer. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in performing its annual impairment analysis for certain goodwill and intangible assets with indefinite lives. The issuer, with the assistance of the company’s specialist, used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the valuation models used in the impairment analysis. Certain of these assumptions were developed using data derived from comparable companies. The company’s specialist also prepared a sensitivity analysis using certain assumptions based on the statistical data points of the assumptions. The firm’s approach for testing the goodwill and indefinite lived intangible assets for impairment was to test the issuer’s process, and the firm used an auditor-employed specialist to assist it with testing the valuation models used by the issuer. The following deficiency was identified: \n• The auditor-employed specialist did not perform procedures to evaluate the relevance of the comparable companies used to develop these significant assumptions beyond determining whether those companies operated in the same industry as the issuer. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "To test the existence of certain inventory, the firm virtually observed the inventory at selected locations through video calls as of an interim date, confirming only that inventory was present, and performed certain roll forward procedures from the interim date to year-end. The following deficiency was identified: \n• The firm did not identify and test any controls over the existence of this inventory. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1141", "Firm Names": "KPMG Cardenas Dosal, S.C.", "Inspection Year": "2024", "Country": "Mexico", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "To test the existence of certain inventory, the firm virtually observed the inventory at selected locations through video calls as of an interim date, confirming only that inventory was present, and performed certain roll forward procedures from the interim date to year-end. The following deficiency was identified: \n• The firm did not perform sufficient procedures to test the existence of this inventory because the firm’s observation procedures were not suitable, as the firm did not perform any test count procedures during the observations. Therefore, these observations did not provide any evidence of the quantity and physical condition of the inventory. (AS 2510.09)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm selected for testing a control over the valuation of this goodwill that consisted of the performance of an annual impairment analysis and management’s review and approval of (1) certain projections and base data produced by the issuer and used by the company’s specialist to determine the significant assumption and (2) the impairment analysis performed, including the VIU model and carrying amount of the goodwill. The following deficiency was identified: \n• The firm did not identify and test any controls over the completeness of certain data produced by the issuer that was provided to the company’s specialist and used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm selected for testing a control over the valuation of this goodwill that consisted of the performance of an annual impairment analysis and management’s review and approval of (1) certain projections and base data produced by the issuer and used by the company’s specialist to determine the significant assumption and (2) the impairment analysis performed, including the VIU model and carrying amount of the goodwill. The following deficiency was identified: \n• The firm did not evaluate the specific review procedures the control owners performed to assess the reasonableness of a significant assumption used by the issuer in the VIU model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm selected for testing a control over the valuation of this goodwill that consisted of the performance of an annual impairment analysis and management’s review and approval of (1) certain projections and base data produced by the issuer and used by the company’s specialist to determine the significant assumption and (2) the impairment analysis performed, including the VIU model and carrying amount of the goodwill. The following deficiency was identified: \n• The firm did not evaluate the specific review procedures the control owners performed to assess the reasonableness of a significant assumption used by the issuer in the VIU model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist to determine the significant assumption used by the issuer in performing its annual impairment analysis beyond evaluating the consistency of the assumptions with historical experience and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform procedures to evaluate the work of the company’s specialist beyond inquiry and testing the accuracy of certain data used by the company’s specialist. (AS 1105.A6-.A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to certain projected data used by the issuer in the VIU model, including taking into account the issuer’s intent and ability to achieve the assumptions and projected data beyond inquiry, obtaining a current contract and bid from an external vendor unrelated to the significant assumption, and performing a sensitivity analysis. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist (“company’s specialist”) to assist in determining a significant assumption used by the issuer in performing its annual impairment analysis for certain goodwill using a Value in Use (VIU) approach. The issuer used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the VIU model used in the impairment analysis. \nThe firm’s approach for substantively testing the goodwill for impairment was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to certain projected data used by the issuer in the VIU model, including taking into account the issuer’s intent and ability to achieve the assumptions and projected data beyond inquiry, obtaining a current contract and bid from an external vendor unrelated to the significant assumption, and performing a sensitivity analysis. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• For certain of these controls, the firm did not identify and test any controls over the accuracy and completeness of certain data or reports used in the operation of the controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over revenue and accounts receivable that consisted of management’s review of (1) changes to customer data, (2) the accounts receivable and allowance for doubtful accounts, (3) credit memos, (4) sales reversal entries, (5) the rebate reserves and underlying assumptions, and (6) the allocation of the total transaction price to the separate performance obligations based on their relative standalone selling prices. The following deficiency was identified: \n• For certain of these controls, the firm did not identify and test any controls over the accuracy and completeness of certain data or reports used in the operation of the controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The principal auditor also instructed the firm to perform certain procedures to substantively test revenue, including the performance of a software-assisted analysis to test the relationships among revenue, accounts receivable, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the firm’s testing of cash receipts data underlying the analysis. To test this data, the firm agreed a sample of cash receipts to bank statements and/or customer invoices. The firm did not perform sufficient procedures to evaluate whether the cash receipts data was sufficiently precise and appropriate for use in the analysis because it did not evaluate whether:\n• the cash receipts of two of the selections were related to sales invoices outstanding in accounts receivables; \n• the entire cash receipt of one of the selections was related to sales invoices outstanding in accounts receivables using independent information from the customers, as the firm only agreed a portion of the cash receipt to a customer invoice; and \n• the recorded cash reversal against the customer balance of one of the selections related to revenue and a related outstanding accounts receivable or evaluate whether this was a true exception in the context of the testing attributes. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The principal auditor also instructed the firm to perform certain procedures to substantively test revenue, including the performance of a software-assisted analysis to test the relationships among revenue, accounts receivable, and cash receipts. The reliability of the audit evidence obtained from this analysis was dependent upon the firm’s testing of cash receipts data underlying the analysis. To test this data, the firm agreed a sample of cash receipts to bank statements and/or customer invoices. The firm did not perform sufficient procedures to evaluate whether the cash receipts data was sufficiently precise and appropriate for use in the analysis because it did not evaluate whether:\n• the cash receipts of two of the selections were related to sales invoices outstanding in accounts receivables; \n• the entire cash receipt of one of the selections was related to sales invoices outstanding in accounts receivables using independent information from the customers, as the firm only agreed a portion of the cash receipt to a customer invoice; and \n• the recorded cash reversal against the customer balance of one of the selections related to revenue and a related outstanding accounts receivable or evaluate whether this was a true exception in the context of the testing attributes. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1272", "Firm Names": "S.R. Batliboi & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Sales Discounts and Related Accruals", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing three controls over sales discounts and related accruals that consisted of management’s (1) review of the accrual calculation and reconciliation of the accrual balance to the general ledger, (2) analysis of accrual carryovers, and (3) approval of sales discount disbursements. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to initiate, process, and record revenue transactions. In its testing of controls over revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs). As a result of the deficiencies in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to initiate, process, and record revenue transactions. In its testing of controls over revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs).\nThe firm selected for testing two user access controls over this IT system that consisted of the issuer’s review and approval of privileged system access, including a review of the activity performed by users that are granted such access to confirm that it was aligned with the access request/requirement. The firm did not evaluate the specific review procedures that the control owner performed to (1) evaluate whether the activity was aligned with the access request/requirement and (2) investigate and timely resolve any activity performed by the user beyond the access request/requirement. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to initiate, process, and record revenue transactions. In its testing of controls over revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs).\nThe firm selected for testing two user access controls over this IT system that consisted of the issuer’s review and approval of privileged system access, including a review of the activity performed by users that are granted such access to confirm that it was aligned with the access request/requirement. The firm did not evaluate the specific review procedures that the control owner performed to (1) evaluate whether the activity was aligned with the access request/requirement and (2) investigate and timely resolve any activity performed by the user beyond the access request/requirement. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain revenue, which was affected by the audit deficiencies related to user access, the following additional deficiency was identified: The firm did not identify and test any controls over the manually recorded transaction prices used to recognize the revenue to ensure that they agreed with the prices associated with the respective sales orders. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an IT system to process and record revenue transactions. In its testing of controls over revenue, the firm tested various automated controls that used data and reports generated or maintained by this IT system. The accuracy and completeness of these data and reports depended on effective ITGCs. As a result of the following deficiencies in the firm’s testing of ITGCs, the firm’s testing of these automated controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain user access controls over this IT system that consisted of the configuration of the IT systems to restrict access to authorized users depending on the nature of the activities performed by the users. The firm did not test aspects of these controls that would address certain risks identified by the firm associated with certain personnel having privileged access to specific functions of the IT system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain user access controls over this IT system that consisted of the configuration of the IT systems to restrict access to authorized users depending on the nature of the activities performed by the users. The firm did not test aspects of these controls that would address certain risks identified by the firm associated with certain personnel having privileged access to specific functions of the IT system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1315", "Firm Names": "Tanaka, Valdivia, Arribas & Asociados Sociedad Civil de Responsabilidad Limitada", "Inspection Year": "2024", "Country": "Peru", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts, which were measured based on estimates, the following deficiency was identified: \n• The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of certain of this revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts, which were measured based on estimates, the following deficiency was identified: \n• The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of certain of this revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts, which were measured based on estimates, the following deficiency was identified: \n• The firm selected a sample of transactions to test the measurement of this revenue. The firm did not sufficiently evaluate whether data was appropriately used, and significant assumptions were appropriately applied, in measuring this revenue because it did not compare the amount of revenue it calculated for the selected transactions to the amount of revenue recorded by the issuer. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts, which were measured based on estimates, the following deficiency was identified: \n• The firm did not evaluate the reasonableness of certain significant assumptions that the issuer used to estimate this type of revenue. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognizes multiple types of revenue. For one type of revenue and the related accounts, which were measured based on estimates, the following deficiency was identified: \n• The firm did not evaluate the reasonableness of another significant assumption that the issuer used to estimate a related account. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• For certain revenue of this type, the firm did not perform sufficient procedures to evaluate the issuer’s identification of performance obligations, because it did not evaluate (1) the issuer’s basis for concluding that the goods and services, or bundles thereof, represented a single or multiple performance obligation(s) and (2) whether the issuer was acting as the principal for the transaction rather than an agent. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• For certain revenue of this type, the firm did not perform sufficient procedures to evaluate the issuer’s identification of performance obligations, because it did not evaluate (1) the issuer’s basis for concluding that the goods and services, or bundles thereof, represented a single or multiple performance obligation(s) and (2) whether the issuer was acting as the principal for the transaction rather than an agent. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not perform sufficient procedures to test when the issuer recognized revenue, because it did not perform procedures to evaluate whether (1) the issuer had satisfied the performance obligation(s) at the time revenue was recognized and (2) the revenue for each performance obligation should have been recognized at a point-in-time or over time. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not perform sufficient procedures to test when the issuer recognized revenue, because it did not perform procedures to evaluate whether (1) the issuer had satisfied the performance obligation(s) at the time revenue was recognized and (2) the revenue for each performance obligation should have been recognized at a point-in-time or over time. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the determination of the transaction prices, because, when concluding that variable consideration did not exist, the firm did not evaluate aspects of the revenue transactions that indicated the presence of variable consideration. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the determination of the transaction prices, because, when concluding that variable consideration did not exist, the firm did not evaluate aspects of the revenue transactions that indicated the presence of variable consideration. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the determination of the transaction prices, because, when concluding that variable consideration did not exist, the firm did not evaluate aspects of the revenue transactions that indicated the presence of variable consideration. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not test, or identify and test controls over, the completeness and accuracy of issuer-produced data the issuer used to develop significant assumptions used in measuring variable consideration for certain revenue of this type. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For a second type of revenue, the following deficiency was identified: \n• The firm did not evaluate the reasonableness of a significant assumption the issuer used to measure this revenue. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For a third type of revenue, the firm relied on certain controls to reduce the nature, timing, and extent of its substantive procedures to test revenue. The following deficiency was identified: \n• The firm did not identify and test controls that addressed the completeness and accuracy of revenue transaction details used in the operation of an information-technology automated control selected for testing. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For a third type of revenue, the firm relied on certain controls to reduce the nature, timing, and extent of its substantive procedures to test revenue. The following deficiency was identified: \n• The firm did not test, or identify and test any controls over, the completeness and accuracy of certain system-generated data that was used to develop a significant assumption the issuer used to recognize revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "Related to multiple types of revenue, the firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "Related to multiple types of revenue, the firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment to test the recoverability of certain long-lived assets. The firm did not perform procedures to test the valuation of these long-lived assets, beyond obtaining a summary of the company’s specialist’s valuation memorandum. 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-.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the allowance for doubtful accounts was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to evaluate whether the firm had a reasonable basis for the significant assumptions related to the expected credit loss rate the issuer used to estimate its allowance for doubtful accounts. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2388", "Firm Names": "Wei, Wei & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the allowance for doubtful accounts was to test the issuer’s process. The following deficiency was identified: \n• The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced data the issuer used to develop the significant assumptions. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2738", "Firm Names": "M&K CPAS, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, the issuer identified indicators of impairment and performed a quantitative assessment of impairment. The firm did not perform procedures to evaluate the issuer’s determination of the asset group used in its quantitative assessment. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2738", "Firm Names": "M&K CPAS, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, the issuer identified indicators of impairment and performed a quantitative assessment of impairment. The firm did not perform procedures, beyond inquiry, observing the issuer’s implementation of certain assumptions, and performing a sensitivity analysis, to evaluate the reasonableness of the significant assumptions the issuer used in its quantitative assessment. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3223", "Firm Names": "Mercurius & Associates LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transaction", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures, beyond inquiry and obtaining and reading an issuer-prepared memorandum, to evaluate whether the issuer appropriately accounted for certain aspects of a related party transaction in conformity with GAAP. (AS 2410.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3223", "Firm Names": "Mercurius & Associates LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transaction", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external valuation specialist to determine the fair value of this related party transaction. The firm’s approach to substantively testing the fair value of this transaction was to test the issuer’s process. The firm did not evaluate the relevance and reliability of certain data from sources external to the issuer that the company’s specialist used to develop certain significant assumptions. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3223", "Firm Names": "Mercurius & Associates LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transaction", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged an external valuation specialist to determine the fair value of this related party transaction. The firm’s approach to substantively testing the fair value of this transaction was to test the issuer’s process. The firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of the significant assumptions developed by the company’s specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3223", "Firm Names": "Mercurius & Associates LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm used positive confirmation requests to test a significant account. The firm did not maintain control of the confirmation requests and responses through direct communication with the intended recipients of the confirmation requests. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3223", "Firm Names": "Mercurius & Associates LLP", "Inspection Year": "2025", "Country": "India", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer entered into sales contracts with third-party customers, which outlined the specific terms and conditions with the customers. For certain revenue transactions, sales orders were generated (and revenue was recognized) based on the quantities of goods sold to the customers that were manually entered into the issuer’s accounting system. The following deficiency was identified: \n• The firm selected for testing a control over the recognition of this revenue that consisted of the issuer’s review of new and amended sales contracts. The firm identified a deficiency in the design effectiveness of the control during its interim testing. To test the remediation of this control deficiency, the firm selected and tested a sample of new and amended sales contracts once the issuer remediated the deficiency. The firm did not perform procedures to test, or test any controls over, the completeness of the population of new and amended sales contracts from which it made its selections for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer entered into sales contracts with third-party customers, which outlined the specific terms and conditions with the customers. For certain revenue transactions, sales orders were generated (and revenue was recognized) based on the quantities of goods sold to the customers that were manually entered into the issuer’s accounting system. The following deficiency was identified: \n• The firm selected for testing a control over the recognition of this revenue that consisted of the issuer’s review of new and amended sales contracts. The firm identified a deficiency in the design effectiveness of the control during its interim testing. To test the remediation of this control deficiency, the firm selected and tested a sample of new and amended sales contracts once the issuer remediated the deficiency. The firm did not perform sufficient procedures to test the effectiveness of the issuer’s remediation of the control deficiency because approximately 44 percent of the new and amended sales contracts selected to test the remediation were entered into or amended prior to the issuer’s remediation of the deficiency. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The issuer entered into sales contracts with third-party customers, which outlined the specific terms and conditions with the customers. For certain revenue transactions, sales orders were generated (and revenue was recognized) based on the quantities of goods sold to the customers that were manually entered into the issuer’s accounting system. The following deficiencies were identified: \n• The firm identified a process risk point over the recognition of this revenue that did not have an associated control and concluded that a design effectiveness deficiency existed. The firm identified and tested compensating controls that it believed would mitigate the deficiency. The firm did not identify that these compensating controls did not address the risk of material misstatement related to the entry of incorrect quantities of goods sold into the issuer’s accounting system. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The firm selected for testing a control that consisted of the issuer’s review of the assumption. The firm did not evaluate the criteria the control owners used to identify matters for follow-up when assessing the reasonableness of the assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The firm selected for testing a control that consisted of the issuer’s review of the assumption. The firm did not evaluate the criteria the control owners used to identify matters for follow-up when assessing the reasonableness of the assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The firm did not sufficiently evaluate the work of the auditor-employed specialist, as it did not identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the significant assumption, and perform additional procedures or request the auditor-employed specialist to perform additional procedures, as necessary, to address the deficiency. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The firm did not sufficiently evaluate the work of the auditor-employed specialist, as it did not identify that the auditor-employed specialist’s work did not provide sufficient appropriate audit evidence regarding the significant assumption, and perform additional procedures or request the auditor-employed specialist to perform additional procedures, as necessary, to address the deficiency. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The auditor-employed specialist did not perform sufficient procedures to evaluate the relevance \nof the external data when developing the expectation of the significant assumption. (AS 1105.04 \nand .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it with evaluating the reasonableness of a significant assumption used by the issuer to estimate the fair value of a certain liability. To evaluate the reasonableness of the assumption, the auditor-employed specialist developed an expectation of the assumption using certain external data. The following deficiency was identified: \n• The auditor-employed specialist did not perform sufficient procedures to evaluate the relevance \nof the external data when developing the expectation of the significant assumption. (AS 1105.04 \nand .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from the applicable financial reporting framework related to the issuer’s omission of certain disclosures related to intangible assets required by the framework. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from the applicable financial reporting framework related to the issuer’s omission of certain disclosures related to intangible assets required by the framework. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer evaluated certain goodwill for impairment using a discounted cash flow model, which was developed using various assumptions. The firm’s approach for substantively testing this goodwill for impairment was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the issuer to evaluate this goodwill for impairment beyond, for certain assumptions, comparing the assumptions to the most recent approved budget and prior year impairment tests, performing a sensitivity analysis, and inquiring of management and, for certain other assumptions, comparing the assumptions to the most recent approved budget and prior year impairment tests. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain inputs used by the issuer to record intangible assets included the performance of analytical procedures. For certain of these inputs, the firm did not (1) determine, for one of these inputs, whether the expectation used in the analytical procedures was based on predictable relationships and (2) perform procedures to evaluate significant differences between the expected input and actual input used by the issuer, beyond inquiry of management. (AS 2305.13, .14, and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain inputs used by the issuer to record intangible assets included the performance of analytical procedures. For certain of these inputs, the firm did not (1) determine, for one of these inputs, whether the expectation used in the analytical procedures was based on predictable relationships and (2) perform procedures to evaluate significant differences between the expected input and actual input used by the issuer, beyond inquiry of management. (AS 2305.13, .14, and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain inputs used by the issuer to record intangible assets included the performance of analytical procedures. For certain of these inputs, the firm did not (1) determine, for one of these inputs, whether the expectation used in the analytical procedures was based on predictable relationships and (2) perform procedures to evaluate significant differences between the expected input and actual input used by the issuer, beyond inquiry of management. (AS 2305.13, .14, and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from the applicable financial reporting framework related to the issuer’s omission of certain disclosures related to intangible assets required by the framework. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from the applicable financial reporting framework related to the issuer’s omission of certain disclosures related to intangible assets required by the framework. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The principal auditor identified certain long-lived assets as a significant account and the existence and valuation of those assets as relevant assertions. The following deficiency was identified:\n• The firm did not identify and test any controls over the existence and valuation of these long-lived assets. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3240", "Firm Names": "KPMG AG", "Inspection Year": "2024", "Country": "Switzerland", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The principal auditor identified certain long-lived assets as a significant account and the existence and valuation of those assets as relevant assertions. The following deficiency was identified:\n• The firm did not perform any substantive procedures to test the existence and valuation of these long-lived assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3627", "Firm Names": "Sadler, Gibb & Associates, LLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Contingent Consideration Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. As part of the consideration, the issuer recorded a contingent consideration liability related to the sellers’ rights to receive additional shares contingent upon the exercise or conversion of convertible notes, options, and warrants. The firm did not identify and evaluate a departure from GAAP related to the issuer not reflecting that certain warrants had been exercised after the acquisition in its determination of the contingent consideration liability at year end. (AS 2810.30) \nIn connection with our review, the issuer reevaluated its accounting for the contingent consideration liability 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 restated financial statements. Our procedures did not include review of any additional audit work related to the restatement." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe issuer reported different types of inventory. The following deficiency was identified: \n• The firm selected for testing a control over the review of certain inventory but did not perform procedures to test the design and operating effectiveness of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe issuer reported different types of inventory. The following deficiency was identified: \n• The firm selected for testing a control over the review of certain inventory but did not perform procedures to test the design and operating effectiveness of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe issuer reported different types of inventory. The following deficiency was identified: \n• The firm selected for testing controls over the review of certain other inventory and metrics of all inventory. 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe issuer reported different types of inventory. The following deficiency was identified: \n• The firm selected for testing controls over the review of certain other inventory and metrics of all inventory. 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe issuer reported different types of inventory. The following deficiency was identified: \n• The firm did not identify and test any controls over the completeness and accuracy of reports that were used in the operation of certain of the controls it selected for testing over inventory. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5348", "Firm Names": "Frost, PLLC", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe firm did not perform any procedures to test certain components of the issuer’s calculation of the cost of certain inventory. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "35", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm determined that the issuer was unable to support whether or not it had satisfied its performance obligations for several revenue transactions selected for testing. As a result, the firm identified adjusting entries that the issuer recorded. The firm did not perform procedures to obtain further audit evidence to address whether the adjusting journal entries were appropriate or, if the firm was unable to obtain sufficient appropriate audit evidence to have a reasonable basis to conclude about whether the financial statements as a whole were free of material misstatement, the firm should have expressed a qualified opinion or a disclaimer of opinion. (AS 2810.35) \nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "35", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm determined that the issuer was unable to support whether or not it had satisfied its performance obligations for several revenue transactions selected for testing. As a result, the firm identified adjusting entries that the issuer recorded. The firm did not perform procedures to obtain further audit evidence to address whether the adjusting journal entries were appropriate or, if the firm was unable to obtain sufficient appropriate audit evidence to have a reasonable basis to conclude about whether the financial statements as a whole were free of material misstatement, the firm should have expressed a qualified opinion or a disclaimer of opinion. (AS 2810.35) \nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate whether two additional journal entries that it identified to reverse revenue, which the issuer recorded, were appropriate, because it did not evaluate the appropriateness of the offsets to the reversed revenue. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate whether two additional journal entries that it identified to reverse revenue, which the issuer recorded, were appropriate, because it did not evaluate the appropriateness of the offsets to the reversed revenue. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate whether two additional journal entries that it identified to reverse revenue, which the issuer recorded, were appropriate, because it did not evaluate the appropriateness of the offsets to the reversed revenue. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue and performed cut-off testing. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate whether two additional journal entries that it identified to reverse revenue, which the issuer recorded, were appropriate, because it did not evaluate the appropriateness of the offsets to the reversed revenue. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for certain revenue and related accounts 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate the issuer’s conclusions about collectability and satisfaction of performance obligations, beyond obtaining confirmations from certain customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate the issuer’s conclusions about collectability and satisfaction of performance obligations, beyond obtaining confirmations from certain customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate the issuer’s conclusions about collectability and satisfaction of performance obligations, beyond obtaining confirmations from certain customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate the issuer’s conclusions about collectability and satisfaction of performance obligations, beyond obtaining confirmations from certain customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the issuer’s conclusion that an allowance for doubtful accounts was not necessary, beyond testing the issuer’s accounts receivable aging report for clerical accuracy and completeness and testing certain subsequent cash receipts. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the issuer’s conclusion that an allowance for doubtful accounts was not necessary, beyond testing the issuer’s accounts receivable aging report for clerical accuracy and completeness and testing certain subsequent cash receipts. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform procedures to demonstrate that, in developing its independent expectation, it took into account certain requirements of the applicable financial framework so that its independent expectation considered the factors relevant to the estimate. (AS 2501.21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived, beyond performing a sensitivity analysis for one of those assumptions. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform sufficient procedures to demonstrate that it had a reasonable basis, including taking into account its understanding of the issuer’s process, for another assumption it derived, because it did not demonstrate how its assumption took into account certain factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform sufficient procedures to demonstrate that it had a reasonable basis, including taking into account its understanding of the issuer’s process, for another assumption it derived, because it did not demonstrate how its assumption took into account certain factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of information it obtained from an external source and used to develop one of its assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment to determine whether its intangible assets were impaired. The firm’s approach for substantively testing this assessment was to develop an independent expectation of the fair value of the intangible assets. The following deficiencies were identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of information it obtained from an external source and used to develop one of its assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1101", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2105", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2110", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "57", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2805", "Paragraph of the Auditing Standard": "5", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer’s financial statements because its procedures were limited to establishing a materiality level for the financial statements, certain planning procedures, and obtaining certain issuer-prepared documents. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2105.03; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2805.05; AS 2810.30 and .31" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer evaluated whether there were any factors or indicators that there was an other than temporary decrease in the value of this investment in accordance with FASB ASC Topic 323, Investments – Equity Method and Joint Ventures, including consideration of certain factors of which the firm was aware that indicated that there was a loss in the value of the investment that was other than a temporary decline. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer evaluated whether there were any factors or indicators that there was an other than temporary decrease in the value of this investment in accordance with FASB ASC Topic 323, Investments – Equity Method and Joint Ventures, including consideration of certain factors of which the firm was aware that indicated that there was a loss in the value of the investment that was other than a temporary decline. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer evaluated whether there were any factors or indicators that there was an other than temporary decrease in the value of this investment in accordance with FASB ASC Topic 323, Investments – Equity Method and Joint Ventures, including consideration of certain factors of which the firm was aware that indicated that there was a loss in the value of the investment that was other than a temporary decline. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer recognized its share of the earnings or losses of the investee. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer recognized its share of the earnings or losses of the investee. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not sufficiently evaluate the issuer’s conclusion not to consolidate this investee, because it did not evaluate whether the issuer had a controlling financial interest in the investee. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer held equity-method investments with various investees. For one equity-method investment, the following deficiency was identified: \n• The firm did not sufficiently evaluate the issuer’s conclusion not to consolidate this investee, because it did not evaluate whether the issuer had a controlling financial interest in the investee. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For another equity-method investment, the firm did not perform procedures, beyond inquiry, to test the valuation of this investment at year end and the related impairment losses. Further, the firm did not perform procedures to test whether impairment losses were recorded in the appropriate period even though it was aware of certain contrary evidence. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Method Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "For another equity-method investment, the firm did not perform procedures, beyond inquiry, to test the valuation of this investment at year end and the related impairment losses. Further, the firm did not perform procedures to test whether impairment losses were recorded in the appropriate period even though it was aware of certain contrary evidence. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported goodwill related to certain reporting units. The firm did not perform any procedures to evaluate whether the issuer identified its reporting units in conformity with FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported goodwill related to certain reporting units. The firm did not perform any procedures to evaluate whether the issuer identified its reporting units in conformity with FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer reported goodwill related to certain reporting units. The firm did not perform any procedures to evaluate whether the issuer identified its reporting units in conformity with FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer reported goodwill related to certain reporting units. The firm did not perform any procedures to evaluate whether the issuer identified its reporting units in conformity with FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the company’s specialist in the quantitative assessment and/or used by the firm in developing its independent expectation. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the company’s specialist in the quantitative assessment and/or used by the firm in developing its independent expectation. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the company’s specialist in the quantitative assessment and/or used by the firm in developing its independent expectation. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the company’s specialist in the quantitative assessment and/or used by the firm in developing its independent expectation. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived and used in its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "For one reporting unit, the issuer engaged an external specialist to perform a quantitative assessment to evaluate goodwill for impairment. The firm’s approach for substantively testing the quantitative assessment was to test the issuer’s process and develop an independent expectation. The following deficiency was identified: \n• The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived and used in its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "For another reporting unit, the issuer performed a qualitative assessment to evaluate goodwill for impairment and determined that it was not more likely than not that the carrying value of the reporting unit was more than its fair value. The firm’s approach for substantively testing whether this goodwill was impaired was to develop an independent expectation of the fair value of the reporting unit. The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived and used in developing its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "For another reporting unit, the issuer performed a qualitative assessment to evaluate goodwill for impairment and determined that it was not more likely than not that the carrying value of the reporting unit was more than its fair value. The firm’s approach for substantively testing whether this goodwill was impaired was to develop an independent expectation of the fair value of the reporting unit. The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived and used in developing its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer’s qualitative assessments to evaluate whether certain of its investments were impaired. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer’s qualitative assessments to evaluate whether certain of its investments were impaired. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5525", "Firm Names": "Fruci & Associates II, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment, using a discounted cash flow analysis, to assess goodwill for impairment. The firm did not perform procedures to test the issuer’s quantitative assessment, beyond comparing the analysis with prior year analyses, testing the mathematical accuracy of the analysis, and researching general industry economic conditions. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "596", "Firm Names": "CohnReznick LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas and did not identify the deficiencies below.\nThe firm selected for testing a control over revenue. Except for one of the selected items that was part of the firm’s walkthrough, the firm did not test the specific review procedures that the control owner performed over certain aspects of this control, beyond inspecting for evidence of the control owners’ approval. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "596", "Firm Names": "CohnReznick LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas and did not identify the deficiencies below.\nThe firm selected for testing certain controls over inventory. Except for certain of the selected items that were part of the firm’s walkthroughs, the firm did not test the specific review procedures that the control owners performed over certain aspects of these controls, beyond inspecting for evidence of the control owners’ approval. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "596", "Firm Names": "CohnReznick LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm did not perform procedures to evaluate the reasonableness of a significant assumption used to estimate the amount of acquired intangible assets, beyond inquiry with management. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s inaccurate disclosures that it recognized revenue in conformity with FASB ASC Topic 605, Revenue Recognition, which was superseded by FASB ASC Topic 606, Revenue from Contracts with Customers, prior to the year under audit. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its disclosures of revenue recognition and determined that the disclosures were inaccurate. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected the disclosures in a subsequent filing. The firm reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s inaccurate disclosures that it recognized revenue in conformity with FASB ASC Topic 605, Revenue Recognition, which was superseded by FASB ASC Topic 606, Revenue from Contracts with Customers, prior to the year under audit. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its disclosures of revenue recognition and determined that the disclosures were inaccurate. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected the disclosures in a subsequent filing. The firm reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the issuer’s restated revenue disclosures discussed. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to test accounts receivable. The firm did not perform any alternative procedures for the positive confirmation requests for which it did not receive a response. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the allowance for doubtful accounts beyond reading issuer prepared accounts receivable aging schedules. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the transactions with related parties disclosed in the financial statements. (AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. (AS 2410.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Subsequent Events", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2801", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm did not perform auditing procedures, at or near the date of the auditor’s report, to ascertain the occurrence of subsequent events that may have required adjustment or disclosure essential to a fair presentation of the financial statements. (AS 2801.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test one type of revenue because its procedures were limited to determining, for a sample of transactions, that a contract existed between the issuer and the customer. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test another type of revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices and/or other issuer prepared information. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the completeness of a related account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "In addition, the firm did not perform sufficient procedures to test this account because it limited its procedures to tracing a sample of transactions to certain issuer-prepared information. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Asset", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the fair value of a certain asset, beyond performing recalculations of an issuer-prepared schedule. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the issuer’s accounting treatment of certain significant transactions. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to these significant transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to these significant transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "In addition, the firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "In addition, the firm did not perform sufficient procedures to test revenue because it limited its procedures to tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Payables", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to test related party payables. The firm did not perform any alternative procedures for a positive confirmation request for which it did not receive a response. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "957", "Firm Names": "Zhen Hui Certified Public Accountants", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1132", "Firm Names": "UHY Haines Norton", "Inspection Year": "2024", "Country": "Australia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used to determine an estimate related to a significant account. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1132", "Firm Names": "UHY Haines Norton", "Inspection Year": "2024", "Country": "Australia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1132", "Firm Names": "UHY Haines Norton", "Inspection Year": "2024", "Country": "Australia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed an impairment assessment of certain intangible assets. The firm did not perform procedures, beyond obtaining and reading the issuer’s sensitivity analysis, to evaluate the reasonableness of the significant assumptions the issuer used in the impairment assessment. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1132", "Firm Names": "UHY Haines Norton", "Inspection Year": "2024", "Country": "Australia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and the related accounts receivable. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and the related accounts receivable. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm did not perform sufficient procedures to test the design of these controls because it did not evaluate whether (1) the controls were designed to satisfy the issuer’s control objectives and (2) the control owners possessed the necessary authority and competence to perform the controls. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm did not perform sufficient procedures to test the design of these controls because it did not evaluate whether (1) the controls were designed to satisfy the issuer’s control objectives and (2) the control owners possessed the necessary authority and competence to perform the controls. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain system-generated information that were used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain system-generated information that were used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm used certain system-generated information (1) in its testing of these controls and/or (2) to make selections to test certain controls but did not perform procedures to test, or test any controls over, the accuracy and/or completeness of this information. Further, the firm used other information in its testing of certain of these controls but did not sufficiently test, or test controls over, the accuracy and completeness of this information because it did not test how the information was generated. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· The firm used certain system-generated information (1) in its testing of these controls and/or (2) to make selections to test certain controls but did not perform procedures to test, or test any controls over, the accuracy and/or completeness of this information. Further, the firm used other information in its testing of certain of these controls but did not sufficiently test, or test controls over, the accuracy and completeness of this information because it did not test how the information was generated. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· In its testing of a control over user access, the firm identified a deviation indicating that an individual may have had inappropriate access to one of these systems. The firm determined that this deviation did not affect its conclusion on the operating effectiveness of this control based on certain system-generated information provided by the issuer. The firm did not sufficiently evaluate the effect of this deviation on the operating effectiveness of this control because it did not test, or test controls over, the accuracy and completeness of this information. (AS 1105.10; AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· In its testing of a control over user access, the firm identified a deviation indicating that an individual may have had inappropriate access to one of these systems. The firm determined that this deviation did not affect its conclusion on the operating effectiveness of this control based on certain system-generated information provided by the issuer. The firm did not sufficiently evaluate the effect of this deviation on the operating effectiveness of this control because it did not test, or test controls over, the accuracy and completeness of this information. (AS 1105.10; AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· In its testing of a control over user access, the firm identified a deviation indicating that an individual may have had inappropriate access to one of these systems. The firm determined that this deviation did not affect its conclusion on the operating effectiveness of this control based on certain system-generated information provided by the issuer. The firm did not sufficiently evaluate the effect of this deviation on the operating effectiveness of this control because it did not test, or test controls over, the accuracy and completeness of this information. (AS 1105.10; AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "The firm selected for testing various user access and change management controls over these IT systems that consisted of the issuer’s reviews of (1) the granting and monitoring of user access and (2) changes to the production environment of these IT systems. The following deficiency was identified: \n· In its testing of a control over user access, the firm identified a deviation indicating that an individual may have had inappropriate access to one of these systems. The firm determined that this deviation did not affect its conclusion on the operating effectiveness of this control based on certain system-generated information provided by the issuer. The firm did not sufficiently evaluate the effect of this deviation on the operating effectiveness of this control because it did not test, or test controls over, the accuracy and completeness of this information. (AS 1105.10; AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The sample sizes that the firm used in certain of its substantive procedures to test these accounts were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The firm did not perform sufficient procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated information that the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s ITGC testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue and the related accounts receivable, as follows: \n· The firm did not perform sufficient procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated information that the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The following additional deficiency was identified: \n• The firm selected for testing controls that consisted of the issuer’s reviews of the sales return reserve and the allowance for doubtful accounts. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The following additional deficiency was identified: \n• The firm selected for testing controls that consisted of the issuer’s reviews of the sales return reserve and the allowance for doubtful accounts. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The following additional deficiency was identified: \n• The firm selected for testing controls that consisted of the issuer’s reviews of the sales return reserve and the allowance for doubtful accounts. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The following additional deficiency was identified: \n• The firm selected for testing controls that consisted of the issuer’s reviews of the sales return reserve and the allowance for doubtful accounts. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The following additional deficiency was identified: \n• The firm’s approach to substantively test the allowance for doubtful accounts was to test the issuer’s process. The firm did not perform procedures, beyond reading an issuer-prepared memorandum, to evaluate the reasonableness of the significant assumptions the issuer used to develop this allowance. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm selected for testing a control that consisted of the issuer’s review of the fair values of these investments. The firm did not identify and test any controls that addressed the reliability of pricing information obtained from the external parties that were used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not perform substantive procedures to test the valuation of these investments beyond (1) comparing their reported fair values to the statements obtained from the external parties that managed the respective investment funds and (2) for a selection of investment funds, testing the fair values of certain underlying investments, while excluding others from testing. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate a departure from GAAP related to the issuer’s presentation of the fair value and non-fair value amounts of these investments within the same short-term and long-term line items in its balance sheet rather than presenting them as \nseparate line items or parenthetically disclosing the amounts measured at fair value included in the aggregate amounts, in conformity with FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate a departure from GAAP related to the issuer’s presentation of the fair value and non-fair value amounts of these investments within the same short-term and long-term line items in its balance sheet rather than presenting them as \nseparate line items or parenthetically disclosing the amounts measured at fair value included in the aggregate amounts, in conformity with FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate another departure from GAAP related to the issuer’s inclusion of certain investments within its fair value hierarchy disclosure rather than excluding them, in conformity with FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate another departure from GAAP related to the issuer’s inclusion of certain investments within its fair value hierarchy disclosure rather than excluding them, in conformity with FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate other departures from GAAP related to the issuer’s omission of, and/or misstatements in, certain disclosures required under FASB ASC Topic 320, Investments – Debt Securities and FASB ASC Topic 820, regarding the nature of these \ninvestments and the methods used to determine their fair values. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported investment securities that were held within various investment funds managed by external parties. The following deficiency was identified: \n• The firm did not identify and evaluate other departures from GAAP related to the issuer’s omission of, and/or misstatements in, certain disclosures required under FASB ASC Topic 320, Investments – Debt Securities and FASB ASC Topic 820, regarding the nature of these \ninvestments and the methods used to determine their fair values. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cost of Sales", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls that addressed the appropriateness of the expenses included within cost of sales. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1487", "Firm Names": "Grant Thornton Zhitong Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cost of Sales", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the appropriateness of the issuer’s inclusion of certain compensation expenses within cost of sales. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2468", "Firm Names": "Citrin Cooperman & Company, LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Redeemable Common Stock", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain redeemable shares of the issuer’s common stock were redeemed during the year. The firm did not perform any procedures to test the redemption price per share of the redeemed shares. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2468", "Firm Names": "Citrin Cooperman & Company, LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond obtaining and reading the issuer’s analysis, to evaluate the issuer’s conclusion that a deferred tax asset valuation allowance was not required, including consideration of contradictory evidence. (AS 2501.07; AS 2810.03) \nUnrelated to our review, the issuer reevaluated its accounting for the gross deferred tax asset and the related valuation allowance and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2468", "Firm Names": "Citrin Cooperman & Company, LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond obtaining and reading the issuer’s analysis, to evaluate the issuer’s conclusion that a deferred tax asset valuation allowance was not required, including consideration of contradictory evidence. (AS 2501.07; AS 2810.03) \nUnrelated to our review, the issuer reevaluated its accounting for the gross deferred tax asset and the related valuation allowance and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2468", "Firm Names": "Citrin Cooperman & Company, LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in the amount of the gross deferred tax asset disclosed in the financial statements. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its accounting for the gross deferred tax asset and the related valuation allowance and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2468", "Firm Names": "Citrin Cooperman & Company, LLP", "Inspection Year": "2025", "Country": "United States", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in the amount of the gross deferred tax asset disclosed in the financial statements. (AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its accounting for the gross deferred tax asset and the related valuation allowance and concluded that material misstatements existed that had not been previously identified. The issuer subsequently corrected these misstatements in a restatement of its financial statements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the review of revenue but did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the review of revenue but did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate the accuracy and completeness of the issuer-produced sales registry from which the firm made its selections for its substantive testing of revenue, as the sales registry did not agree to the general ledger. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from IFRS related to the issuer’s recognition of revenue from contract modifications under IFRS 15, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from IFRS related to the issuer’s recognition of revenue from contract modifications under IFRS 15, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Work in Progress", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer recognized revenue over time for certain construction projects and reported work in process for costs incurred that related to satisfied performance obligations of construction contracts. The firm did not identify and evaluate a departure from IFRS related to the issuer’s capitalizing these costs as assets, instead of expensing them as incurred in accordance with IFRS 15. (AS 2810.30)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Trade Receivables", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to customers for trade receivables. No response was received for one customer’s confirmation. The firm did not perform sufficient alternative procedures because its procedures were limited to reviewing the invoice and related contract without considering adjustments made to the receivable balance based on contract adjustments. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6006", "Firm Names": "Moore Assurance S.A.S.", "Inspection Year": "2024", "Country": "Colombia", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Accounts Receivables", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls that addressed the risks associated with certain other receivables. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties, including evaluating whether an interest-free loan agreement was a transaction with a related party. (AS 2410.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not perform procedures to test related party transactions and balances, including the presentation of the transactions in the statement of cash flows, beyond sending confirmation requests for the balances and inspecting evidence of cash receipts and payments. Further, for certain confirmations that were not returned or that were returned without a response, the firm did not perform alternative procedures. (AS 2310.31; AS 2410.12) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not perform procedures to test related party transactions and balances, including the presentation of the transactions in the statement of cash flows, beyond sending confirmation requests for the balances and inspecting evidence of cash receipts and payments. Further, for certain confirmations that were not returned or that were returned without a response, the firm did not perform alternative procedures. (AS 2310.31; AS 2410.12) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not identify and evaluate the issuer’s omission of disclosures related to certain related party transactions required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not identify and evaluate the issuer’s omission of disclosures related to certain related party transactions required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not identify and evaluate the issuer’s omission of disclosures related to certain related party transactions required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not take any action in response to information regarding certain related party transactions that indicated possible illegal acts. (AS 2405.07 and .10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer entered into various transactions with related parties. The following deficiency was identified: \n• The firm did not take any action in response to information regarding certain related party transactions that indicated possible illegal acts. (AS 2405.07 and .10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain significant transactions. The following deficiency was identified: \n• The firm did not perform substantive procedures to test whether the issuer’s accounting for, and presentation of, these transactions was in accordance with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain significant transactions. The following deficiency was identified: \n• The firm did not perform substantive procedures to test the fair value of certain aspects of these transactions beyond obtaining and testing the mathematical accuracy of the issuer’s estimates. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain significant transactions. The following deficiency was identified: \n• The firm did not identify and evaluate the issuer’s omission of certain disclosures related to these transactions required by FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain significant transactions. The following deficiency was identified: \n• The firm did not identify and evaluate the issuer’s omission of certain disclosures related to these transactions required by FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue, the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized, beyond obtaining issuer\u0002" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For certain other revenue, the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized, beyond obtaining issuer\u0002" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to the issuer’s customers for a sample of accounts receivable. For the confirmation requests that were not returned or that were returned without a response, the firm did not perform alternative procedures. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "41", "Description in the Firm's Inspection Report": "The firm did not perform procedures to examine material adjustments made to accounts receivable during the course of preparing the financial statements. (AS 2301.41)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the allowance for doubtful accounts. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that the issuer did not present an aspect of the statement of cash flows in conformity with FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that the issuer did not present an aspect of the statement of cash flows in conformity with FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test a disclosure related to cash. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing, without having an appropriate rationale. Further, the firm did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate the appropriateness of the issuer’s accounting for an aspect of this significant account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer reported an estimate related to this significant account. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of information from external sources that the issuer used to develop significant assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer reported an estimate related to this significant account. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the relevance and reliability of information from external sources that the issuer used to develop significant assumptions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported an estimate related to this significant account. The following deficiency was identified: \n• The firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of issuer-produced information that the issuer used to develop significant assumptions. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported an estimate related to this significant account. The following deficiency was identified: \n• The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer beyond testing one input of one of these assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether certain aspects of the issuer’s disclosures related to this significant account were accurate, including consideration of contradictory evidence included in the workpapers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not evaluate whether certain aspects of the issuer’s disclosures related to this significant account were accurate, including consideration of contradictory evidence included in the workpapers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties. (AS 2410.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test related party transactions and balances beyond confirming the transactions and inspecting evidence of certain cash receipts to and payments from related parties. (AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer did not include any disclosures related to its ability to continue as a going concern. Certain conditions and events existed that would indicate substantial doubt about the issuer’s ability to continue as a going concern for a reasonable period of time. The firm did not perform any procedures to determine whether the issuer’s lack of disclosures regarding its ability to continue as a going concern was in conformity with FASB ASC Topic 205, Presentation of Financial Statements. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing, without having an appropriate rationale. Further, the firm did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate the completeness of the issuer’s revenue disclosures required by FASB ASC Topic 606. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to evaluate whether the issuer appropriately accounted for certain significant transactions in accordance with GAAP, beyond reading the contractual agreements and inquiring of management. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6255", "Firm Names": "PAN-CHINA SINGAPORE PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "11-Sep-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified journal entries that met certain criteria and selected certain of those journal entries for testing, without having an appropriate rationale. Further, the firm did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "74", "Firm Names": "S. R. Snodgrass, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm’s approach to test ACL was to test management’s process. The issuer engaged a specialist to prepare a model validation report over the issuer’s model to estimate the quantitative component of the ACL. The firm did not test, or test controls over, the accuracy and completeness of the company\u0002produced data used by the company’s specialist in its model validation report. (AS 1105.A8a) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "74", "Firm Names": "S. R. Snodgrass, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nTo determine the qualitative component of the ACL, the issuer identified one or more data inputs relevant to each identified qualitative factor and established quantitative ranges for these inputs corresponding with the risk level expected to be assigned to each factor and loan pool. The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions related to the assessed risk levels and related basis points applied to the collateral factor reserves. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "74", "Firm Names": "S. R. Snodgrass, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer utilized a service organization to process its securities transactions. The issuer used an impairment analysis prepared by the service organization to determine whether certain investment securities had credit related impairments. The firm did not perform procedures to test the accuracy of credit ratings used by the service organization in developing the issuer’s impairment analysis for these investment securities. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control that consisted of a review of impairment indicators for goodwill. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control that consisted of a review of impairment indicators for goodwill. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not identify and test any controls over the issuer’s identification of reporting units in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: \n· The firm did not perform any procedures to evaluate the relevance and reliability of certain data from external sources used by the company’s specialist to develop a significant assumption. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: \n· The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist, beyond inquiry of the company’s specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer engaged a valuation specialist to perform its annual goodwill impairment analysis. The following deficiency was identified: \n· The firm did not perform procedures to evaluate the reasonableness of another significant assumption developed by the company’s specialist, beyond performing a sensitivity analysis. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not sufficiently evaluate whether the method used by the issuer to develop the fair value of its reporting units was in conformity with FASB ASC Topic 350, because the firm did not perform procedures to evaluate the appropriateness of the issuer’s identification of its reporting units. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform procedures, beyond reviewing the issuer’s fourth quarter triggering event assessment, to evaluate whether a quantitative assessment was required during the fourth quarter, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform procedures, beyond reviewing the issuer’s fourth quarter triggering event assessment, to evaluate whether a quantitative assessment was required during the fourth quarter, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform procedures, beyond reviewing the issuer’s fourth quarter triggering event assessment, to evaluate whether a quantitative assessment was required during the fourth quarter, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control that consisted of management’s review of the issuer’s ability to continue as a going concern for a reasonable period of time. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control that consisted of management’s review of the issuer’s ability to continue as a going concern for a reasonable period of time. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nDuring the year under audit, the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer’s ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management’s plans as disclosed in the footnotes, because it did not (1) assess the likelihood that the issuer could obtain additional funding, beyond inquiries of management and review of historical funding, and (2) sufficiently test the prospective financial information which was significant to overcoming the adverse conditions and events, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2415.03, .08, and .09; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nDuring the year under audit, the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer’s ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management’s plans as disclosed in the footnotes, because it did not (1) assess the likelihood that the issuer could obtain additional funding, beyond inquiries of management and review of historical funding, and (2) sufficiently test the prospective financial information which was significant to overcoming the adverse conditions and events, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2415.03, .08, and .09; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nDuring the year under audit, the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer’s ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management’s plans as disclosed in the footnotes, because it did not (1) assess the likelihood that the issuer could obtain additional funding, beyond inquiries of management and review of historical funding, and (2) sufficiently test the prospective financial information which was significant to overcoming the adverse conditions and events, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2415.03, .08, and .09; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nDuring the year under audit, the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer’s ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management’s plans as disclosed in the footnotes, because it did not (1) assess the likelihood that the issuer could obtain additional funding, beyond inquiries of management and review of historical funding, and (2) sufficiently test the prospective financial information which was significant to overcoming the adverse conditions and events, including consideration of contrary evidence included in the firm’s audit work papers. (AS 2415.03, .08, and .09; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over the reconciliation and/or review of revenue and accounts receivable. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s post-issuance monitoring program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over the reconciliation and/or review of revenue and accounts receivable. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the relevance and reliability of certain data obtained from an external vendor used in its substantive testing of revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the relevance and reliability of certain data obtained from an external vendor used in its substantive testing of revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the existence of certain cash balances. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "324", "Firm Names": "Macias Gini & O'Connell LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the existence of certain cash balances. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing certain controls over change management and user access, but did not test, or test any controls over, the completeness of the population from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing certain controls over change management and user access, but did not test, or test any controls over, the completeness of the population from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing certain controls over change management and user access, but did not test, or test any controls over, the completeness of the population from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm did not identify and test controls that addressed the risk that users with the ability to develop changes also have the ability to implement those changes. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm did not identify and test controls that addressed the risk that users with the ability to develop changes also have the ability to implement those changes. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm did not identify and test controls that addressed the risk that users with the ability to develop changes also have the ability to implement those changes. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue, accounts receivable, and unbilled receivables. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiency in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these IT-dependent manual controls was not sufficient. \n• The firm selected for testing a control over logical access to several IT systems, but did not test the aspect of this control related to these IT systems. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing certain controls that consisted of the issuer’s review of certain aspects of revenue, accounts receivable, and unbilled receivables. The firm did not perform procedures to evaluate the review procedures the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing a control over the review of the accuracy of invoices. The firm identified deviations in the operation of this control but did not determine the effect of these deviations on the operating effectiveness of this control. (AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing a control over the review of the accuracy of invoices. The firm identified deviations in the operation of this control but did not determine the effect of these deviations on the operating effectiveness of this control. (AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "For revenue, accounts receivable, and unbilled receivables, the following additional deficiency was identified: \n· The firm selected for testing a control over the review of the accuracy of invoices. The firm identified deviations in the operation of this control but did not determine the effect of these deviations on the operating effectiveness of this control. (AS 2201.48)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The sample sizes that the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on (1) a level of control reliance that was not supported due to (a) the deficiencies in the firm’s control testing discussed above and (b) the firm not obtaining evidence that a control over change management, which it selected for testing, was operating effectively during the entire period of reliance and (2) an assessment of risk for other substantive tests related to the same assertion that was not supported as the engagement team did not perform any other substantive procedures to test the same assertions. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The firm did not perform substantive procedures to test unbilled receivables. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unbilled Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The firm did not perform substantive procedures to test unbilled receivables. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The firm did not perform substantive procedures to test the allowance for doubtful accounts. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "With respect to the firm’s substantive procedures, the following deficiency was identified: \n· The firm did not perform procedures to test, or sufficiently test controls over, as discussed above, the accuracy and completeness of information and reports that it used in its substantive procedures to test revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not identify and test controls that addressed (1) the reasonableness of the company’s specialist’s estimate of this liability and (2) the accuracy and completeness of data and reasonableness of assumptions, which were developed by the issuer, that the company’s specialist used to develop the estimate of this liability. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not perform procedures, beyond obtaining and reading the issuer’s analysis, to evaluate whether the issuer’s recognition of this liability was appropriate, including evaluation of certain contrary information included in its work papers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not perform procedures, beyond obtaining and reading the issuer’s analysis, to evaluate whether the issuer’s recognition of this liability was appropriate, including evaluation of certain contrary information included in its work papers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "5", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liability", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to estimate an insurance-related liability. The firm engaged another specialist to test this liability. The following deficiency was identified: \n· The firm did not evaluate whether the auditor-engaged specialist’s work provided sufficient appropriate audit evidence, because it did not identify that the specialist did not perform substantive procedures to test this liability, beyond inquiry and obtaining and reading the report prepared by the company’s specialist. Further, the firm did not perform any procedures with respect to its use of the work of the (1) company’s specialist as audit evidence and (2) auditor\u0002engaged specialist as audit evidence, beyond obtaining an independence confirmation and documenting the resolution of an inquiry by the specialist. (AS 1105.A1 - .A10; AS 1210.03 - .12; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "549", "Firm Names": "Zwick CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer issued common stock with warrants. The firm did not perform any procedures to test whether the warrants should have been accounted for as equity or a liability. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions to its general ledger. The firm obtained the service auditor’s report for this service organization and identified for testing certain complementary user entity controls (CUECs). The firm identified control deficiencies related to certain of these CUECs. The firm did not evaluate the effect of these deficiencies on the issuer’s ability to meet control objectives stated in the service auditor’s report. (AS 2201.62 and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions to its general ledger. The firm obtained the service auditor’s report for this service organization and identified for testing certain complementary user entity controls (CUECs). The firm identified control deficiencies related to certain of these CUECs. The firm did not evaluate the effect of these deficiencies on the issuer’s ability to meet control objectives stated in the service auditor’s report. (AS 2201.62 and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "As a result of the deficiencies in ITGC testing discussed above, the firm did not sufficiently test whether the information technology (IT) automated application controls and the IT-dependent manual controls it selected for testing over revenue were effective, as each control was dependent on the effectiveness of ITGCs. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used a service organization to provide management reporting related to certain revenue. The firm did not perform any procedures to evaluate whether the issuer implemented the appropriate CUECs as described in the service auditor’s report. (AS 2201.39 and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The issuer used a service organization to provide management reporting related to certain revenue. The firm did not perform any procedures to evaluate whether the issuer implemented the appropriate CUECs as described in the service auditor’s report. (AS 2201.39 and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "In addition, the firm relied upon a report produced by the service organization in its substantive procedures over certain revenue but did not test, or identify and test any controls over (as discussed above), the accuracy and completeness of the report. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "In addition, the firm relied upon a report produced by the service organization in its substantive procedures over certain revenue but did not test, or identify and test any controls over (as discussed above), the accuracy and completeness of the report. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain revenue items selected for testing, the firm did not evaluate whether the performance obligation was satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For certain revenue items selected for testing, the firm did not evaluate whether the performance obligation was satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "577", "Firm Names": "Stowe & Degon LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not test the issuer’s disclosure of revenue by type, beyond tracing the amounts to an issuer\u0002prepared schedule. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm engaged an external specialist to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist. The firm did not identify that the auditor\u0002engaged specialist did not evaluate the reliability of data it obtained from external sources and used to evaluate the reasonableness of these significant assumptions, and perform additional procedures, or request the specialist perform additional procedures, to address the issue. (AS \n1105.04 and .06; AS 1210.09 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm engaged an external specialist to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist. The firm did not identify that the auditor\u0002engaged specialist did not evaluate the reliability of data it obtained from external sources and used to evaluate the reasonableness of these significant assumptions, and perform additional procedures, or request the specialist perform additional procedures, to address the issue. (AS \n1105.04 and .06; AS 1210.09 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm engaged an external specialist to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist. The firm did not identify that the auditor\u0002engaged specialist did not evaluate the reliability of data it obtained from external sources and used to evaluate the reasonableness of these significant assumptions, and perform additional procedures, or request the specialist perform additional procedures, to address the issue. (AS \n1105.04 and .06; AS 1210.09 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm engaged an external specialist to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist. The firm did not identify that the auditor\u0002engaged specialist did not evaluate the reliability of data it obtained from external sources and used to evaluate the reasonableness of these significant assumptions, and perform additional procedures, or request the specialist perform additional procedures, to address the issue. (AS \n1105.04 and .06; AS 1210.09 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer, because it limited its procedures to inquiry and comparing the assumptions to information within certain other company specialists’ reports. Further, the firm did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the issuer. Specifically, the firm developed expectations of these assumptions using, in part, information in certain other company specialists’ reports but did not perform procedures to evaluate the work of those company specialists. (AS 1105.A6 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to demonstrate that it had a reasonable basis for its expectations of additional significant assumptions the issuer developed, because it did not take into account the issuer’s written plans or other relevant documentation. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform sufficient procedures to demonstrate that it had a reasonable basis for its expectations of additional significant assumptions the issuer developed, because it did not take into account the issuer’s written plans or other relevant documentation. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged specialists to assist in determining the valuation of certain liabilities. The firm’s approach for substantively testing these liabilities was to test the issuer’s process. The following deficiency, which involved two types of significant assumptions applied across multiple locations, was identified: \n· The firm did not perform any procedures to evaluate the reasonableness of other significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Equity Instruments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a GAAP departure related to the issuer not reclassifying noncontrolling interests to additional paid in capital upon the exchange of equity instruments that was required by FASB ASC Topic 810, Consolidation. (AS 2810.30 and .31) \nUnrelated to our review, the issuer reevaluated its accounting for the exchange of equity instruments 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "677", "Firm Names": "Cherry Bekaert LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Equity Instruments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a GAAP departure related to the issuer not reclassifying noncontrolling interests to additional paid in capital upon the exchange of equity instruments that was required by FASB ASC Topic 810, Consolidation. (AS 2810.30 and .31) \nUnrelated to our review, the issuer reevaluated its accounting for the exchange of equity instruments 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts based on certain inputs. The firm did not perform sufficient procedures to test certain inputs used by the issuer in recognizing revenue, as their procedures were limited to comparing the inputs to system-generated reports without performing procedures to test, or identify and test controls over, the accuracy of those reports. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries, because it limited its procedures to certain entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "820", "Firm Names": "Ramirez Jimenez International CPA's", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1024", "Firm Names": "Yarel + Partners", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reasonableness of a significant assumption the issuer developed to estimate a significant account, beyond comparing the amount to a contract executed in the prior year. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1024", "Firm Names": "Yarel + Partners", "Inspection Year": "2024", "Country": "Israel", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond inquiry, to test the appropriateness of a disclosure related to this significant account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1263", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a GAAP departure related to the issuer’s classification of distributions received from an equity method investee as investing activities within the statement of cash flows, rather than as operating activities, considering the nature of the activities that generated the distributions, in conformity with FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31) \nIn connection with our review, the issuer reevaluated its classification of the distributions received from the investee within the statement of cash flows 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over the classification of distributions received from its equity method investee within the statement of cash flows 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1263", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a GAAP departure related to the issuer’s classification of distributions received from an equity method investee as investing activities within the statement of cash flows, rather than as operating activities, considering the nature of the activities that generated the distributions, in conformity with FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31) \nIn connection with our review, the issuer reevaluated its classification of the distributions received from the investee within the statement of cash flows 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over the classification of distributions received from its equity method investee within the statement of cash flows 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." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not test whether the issuer compared the fair value of each asset group to the carrying value of each asset group in determining that none of the asset groups were impaired. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures, beyond reviewing sensitivity analyses prepared by the company’s specialist, to evaluate the reasonableness of a significant assumption developed by the company’s specialist, (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer, (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience, (4) evaluate the relevance and reliability of certain external data the company’s specialist used to develop these significant assumptions, and (5) test the accuracy and completeness of the issuer-produced information used by the company’s specialist, and perform additional procedures, or request the specialist perform additional procedures, to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures, beyond reviewing sensitivity analyses prepared by the company’s specialist, to evaluate the reasonableness of a significant assumption developed by the company’s specialist, (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer, (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience, (4) evaluate the relevance and reliability of certain external data the company’s specialist used to develop these significant assumptions, and (5) test the accuracy and completeness of the issuer-produced information used by the company’s specialist, and perform additional procedures, or request the specialist perform additional procedures, to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures, beyond reviewing sensitivity analyses prepared by the company’s specialist, to evaluate the reasonableness of a significant assumption developed by the company’s specialist, (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer, (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience, (4) evaluate the relevance and reliability of certain external data the company’s specialist used to develop these significant assumptions, and (5) test the accuracy and completeness of the issuer-produced information used by the company’s specialist, and perform additional procedures, or request the specialist perform additional procedures, to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures, beyond reviewing sensitivity analyses prepared by the company’s specialist, to evaluate the reasonableness of a significant assumption developed by the company’s specialist, (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer, (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience, (4) evaluate the relevance and reliability of certain external data the company’s specialist used to develop these significant assumptions, and (5) test the accuracy and completeness of the issuer-produced information used by the company’s specialist, and perform additional procedures, or request the specialist perform additional procedures, to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in testing its long-lived assets for impairment. The firm’s approach for substantively testing the impairment analyses was to test the issuer’s process. The firm used an auditor-employed specialist to assist in testing these analyses. The following deficiency was identified: \n· The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist did not (1) perform procedures, beyond reviewing sensitivity analyses prepared by the company’s specialist, to evaluate the reasonableness of a significant assumption developed by the company’s specialist, (2) perform any procedures to evaluate the reasonableness of a significant assumption developed by the issuer, (3) perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions because it limited its procedures to comparing these assumptions to historical and recent experience but did not evaluate the significant differences between the assumptions and the historical and recent experience, (4) evaluate the relevance and reliability of certain external data the company’s specialist used to develop these significant assumptions, and (5) test the accuracy and completeness of the issuer-produced information used by the company’s specialist, and perform additional procedures, or request the specialist perform additional procedures, to address the issues. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer capitalized expenditures for a long-lived asset. The firm selected certain additions for testing, but did not perform any procedures to determine whether these additions qualified for capitalization, including, for one selection, evaluating contradictory evidence in the work papers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded an adjustment to long-lived assets, but the firm did not perform any substantive procedures to test the adjustment. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer capitalized expenditures for a long-lived asset. The firm selected certain additions for testing, but did not perform any procedures to determine whether these additions qualified for capitalization, including, for one selection, evaluating contradictory evidence in the work papers. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "To test revenue, the firm selected a sample of transactions. The following deficiency was identified: \n· The firm did not perform any procedures to test, or test any controls over, the completeness of the issuer-prepared reports from which it selected transactions for testing. (AS 1105.10)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test revenue, the firm selected a sample of transactions. The following deficiency was identified: \n· The firm did not perform sufficient procedures to evaluate whether the issuer had satisfied its performance obligations prior to recognizing certain revenue because it limited its procedures to obtaining issuer-produced documents and/or cash receipts for a selection of transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "To test revenue, the firm selected a sample of transactions. The following deficiency was identified: \n· The firm did not perform sufficient procedures to evaluate whether the issuer had satisfied its performance obligations prior to recognizing certain revenue because it limited its procedures to obtaining issuer-produced documents and/or cash receipts for a selection of transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue and deferred revenue included testing a selection of transactions. The firm did not perform procedures, beyond obtaining issuer-produced information, to test these revenue transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue and deferred revenue included testing a selection of transactions. The firm did not perform procedures, beyond obtaining issuer-produced information, to test these revenue transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test, or test any controls over, the completeness of the population of items from which it selected transactions for testing. (AS 1105.10)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer reported certain investment securities at fair value. The firm did not perform substantive procedures to test the fair value of these investments, beyond comparing the recorded fair value to the record keepers’ reports and inquiring of the record keepers. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate the appropriateness of the issuer’s categorization of these securities within the fair value hierarchy set forth in FASB ASC Topic 820, Fair Value Measurement. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to evaluate whether the issuer’s presentation and disclosure of certain transactions was in conformity with FASB ASC Topic 205, Presentation of Financial Statements, beyond obtaining and reading the issuer’s analysis, which did not support that the presentation and disclosure of these transactions was in conformity with FASB ASC Topic 205. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and its shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer’s consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and its shareholders, and the firm used the work of the company’s specialist as audit evidence. The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company’s specialist and whether the specialist’s findings support or contradict the issuer’s rights and obligations related to the consolidation of the VIEs because it did not (1) evaluate that the legal opinion was approximately six months old, (2) evaluate the nature of the limitations described in the legal opinion, and (3) perform additional procedures to address these matters. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and its shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer’s consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and its shareholders, and the firm used the work of the company’s specialist as audit evidence. The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company’s specialist and whether the specialist’s findings support or contradict the issuer’s rights and obligations related to the consolidation of the VIEs because it did not (1) evaluate that the legal opinion was approximately six months old, (2) evaluate the nature of the limitations described in the legal opinion, and (3) perform additional procedures to address these matters. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5035", "Firm Names": "Shandong Haoxin Certified Public Accountants Co., Ltd", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "24-Jul-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "89", "Firm Names": "Rosenberg Rich Baker Berman, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer made purchases and sales of certain intangible assets and recognized the related activity in its statements of operations and cash flows. The firm did not perform substantive procedures to test these purchases and sales beyond obtaining issuer-produced reports. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "89", "Firm Names": "Rosenberg Rich Baker Berman, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Uncorrected Misstatements", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm identified uncorrected misstatements in certain disclosures in the current year audit. The firm did not evaluate whether these uncorrected misstatements were material, individually or in combination with other misstatements. (AS 2810.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of revenue. The following deficiency was identified: \n· For certain revenue, the firm did not identify and test any controls over the timing of the revenue recognition. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of revenue. The following deficiency was identified: \n· For one control, the firm did not perform procedures to test, or test any controls over, the completeness of the report from which it selected its sample for testing the control. (AS 1105.10)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of revenue. The following deficiency was identified: \n· For certain other controls, the firm did not identify and test any controls over the accuracy and completeness of certain reports used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the firm’s substantive testing of revenue: \n· For certain revenue, the firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the issuer in its estimate of revenue recognition. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the firm’s substantive testing of revenue: \n· For a certain revenue disclosure, the firm did not perform procedures to test, or test any controls over, the accuracy and completeness of the system-generated report used by the firm to test the disclosure. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs) over certain of these IT systems, the firm’s testing of these automated and IT-dependent controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to user access: \n· The firm did not identify and test any controls over the approval of access for new employees to these IT systems. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to user access: \n· The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain system-generated reports used in the firm’s testing of access for active and terminated employees to certain of the issuer’s IT systems. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to user access: \n· The firm selected for testing a review control designed to ensure that access levels are appropriate. The firm did not evaluate the specific procedures performed by the control owners to evaluate whether access continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to user access: \n· The firm selected for testing a review control designed to ensure that access levels are appropriate. The firm did not evaluate the specific procedures performed by the control owners to evaluate whether access continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to change management: \n· The firm selected for testing a change management control over one of the IT systems. The firm did not perform procedures to test, or test any controls over, the completeness of the population of changes from which it made its selections to test this control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to change management: \n· The firm selected for testing a change management control over one of the IT systems. The firm did not identify and test any controls over certain configuration changes to the system. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record long-lived assets and related transactions, including certain systems maintained by external service organizations. In its testing of controls over long-lived assets, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. \nWith respect to change management: \n· The firm did not identify and test any change management controls over one of the other IT systems. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm obtained service organization reports on internal controls related to certain of the issuer’s IT systems. The firm did not sufficiently test the relevant complementary user entity controls, given the deficiencies identified above in testing ITGCs. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm obtained service organization reports on internal controls related to certain of the issuer’s IT systems. The firm did not sufficiently test the relevant complementary user entity controls, given the deficiencies identified above in testing ITGCs. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained service organization reports on internal controls related to certain of the issuer’s IT systems. The firm did not sufficiently test the relevant complementary user entity controls, given the deficiencies identified above in testing ITGCs. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over impairment testing, the firm used the results of its substantive testing as evidence that this control was operating effectively. The firm’s procedures did not provide sufficient appropriate audit evidence because the firm did not directly test the review \nprocedures that the control owner performed. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over impairment testing, the firm used the results of its substantive testing as evidence that this control was operating effectively. The firm’s procedures did not provide sufficient appropriate audit evidence because the firm did not directly test the review \nprocedures that the control owner performed. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B9", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over impairment testing, the firm used the results of its substantive testing as evidence that this control was operating effectively. The firm’s procedures did not provide sufficient appropriate audit evidence because the firm did not directly test the review \nprocedures that the control owner performed. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of data used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over the allocation of purchase price for long-lived assets acquired as a group, the firm used the results of its substantive audit procedures as evidence of the effectiveness of the control. The firm did not evaluate the specific review procedures performed by the control owner to evaluate the methods and assumptions used by the issuer-engaged specialist in the purchase price allocation. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over the allocation of purchase price for long-lived assets acquired as a group, the firm used the results of its substantive audit procedures as evidence of the effectiveness of the control. The firm did not evaluate the specific review procedures performed by the control owner to evaluate the methods and assumptions used by the issuer-engaged specialist in the purchase price allocation. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B9", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over the allocation of purchase price for long-lived assets acquired as a group, the firm used the results of its substantive audit procedures as evidence of the effectiveness of the control. The firm did not evaluate the specific review procedures performed by the control owner to evaluate the methods and assumptions used by the issuer-engaged specialist in the purchase price allocation. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of a certain issuer listing used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over useful lives, the firm did not evaluate the specific review procedures that the control owner performed to evaluate the useful lives of the assets. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over useful lives, the firm did not evaluate the specific review procedures that the control owner performed to evaluate the useful lives of the assets. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm also selected for testing certain review controls over long-lived assets and related transactions. \nThe following deficiency was identified: \n· For a control over asset-related disclosures in the financial statements, the firm did not identify and test any controls over the accuracy of reports and schedules used in the operation of the control, beyond testing one control over the useful life data discussed above. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "342", "Firm Names": "Pannell Kerr Forster of Texas, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "20", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s classification of certain long-lived assets. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor two of the POS applications, the firm did not perform any procedures to test these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor two of the POS applications, the firm did not perform any procedures to test these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor the other POS applications, the firm did not: \n· perform any procedures to test that the access to change the configuration was appropriately restricted; \n· identify and test the controls for all of the discount types that were applied to the issuer’s sales transactions; and \n· perform sufficient procedures to determine that certain of the designated access levels were the only designations that allowed for approval of sales discounts because the procedures were limited to testing one level of access. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor the other POS applications, the firm did not: \n· perform any procedures to test that the access to change the configuration was appropriately restricted; \n· identify and test the controls for all of the discount types that were applied to the issuer’s sales transactions; and \n· perform sufficient procedures to determine that certain of the designated access levels were the only designations that allowed for approval of sales discounts because the procedures were limited to testing one level of access. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "47", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n· The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \n- The firm did not achieve the objectives of both the test of controls and the substantive test because the sampling unit and attributes tested were not the same. (AS 2301.47)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n· The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \n- The sample size the firm used was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not (1) take into account tolerable misstatement and the allowable risk of incorrect acceptance and (2) use the larger of the samples that would otherwise have been designed for the two separate purposes. (AS 2315.16, .19, .23, .23A, and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n· The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \n- The sample size the firm used was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not (1) take into account tolerable misstatement and the allowable risk of incorrect acceptance and (2) use the larger of the samples that would otherwise have been designed for the two separate purposes. (AS 2315.16, .19, .23, .23A, and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \no The sample size the firm used was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not (1) take into account tolerable misstatement and the allowable risk of incorrect acceptance and (2) use the larger of the samples that would otherwise have been designed for the two separate purposes. (AS 2315.16, .19, .23, .23A, and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \no The sample size the firm used was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not (1) take into account tolerable misstatement and the allowable risk of incorrect acceptance and (2) use the larger of the samples that would otherwise have been designed for the two separate purposes. (AS 2315.16, .19, .23, .23A, and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm performed certain dual-purpose testing for its substantive testing and its testing of the operating effectiveness of certain related controls: \no The sample size the firm used was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not (1) take into account tolerable misstatement and the allowable risk of incorrect acceptance and (2) use the larger of the samples that would otherwise have been designed for the two separate purposes. (AS 2315.16, .19, .23, .23A, and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm selected a sample of restaurant sales transactions to perform a test of details; however, the firm did not perform any procedures to test revenue recognition for certain of the sampled items. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm selected a sample of restaurant sales transactions to perform a test of details; however, the firm did not perform any procedures to test revenue recognition for certain of the sampled items. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nFor restaurant sales, the following deficiency was identified: \n• The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of the lists and reports it used in selecting its samples and in performing its testing of restaurant sales. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nThe firm’s primary substantive procedures to test franchise royalty revenue were analytical procedures. \nThe following deficiency was identified: \n• The firm did not perform procedures to determine whether certain assumptions it used in developing its expectation for revenue were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nThe firm’s primary substantive procedures to test franchise royalty revenue were analytical procedures. \nThe following deficiency was identified: \n• The firm did not perform procedures to determine whether certain assumptions it used in developing its expectation for revenue were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nThe firm’s primary substantive procedures to test franchise royalty revenue were analytical procedures. \nThe following deficiency was identified: \n• The expectation the firm used was not sufficiently precise in identifying material misstatements because the firm did not sufficiently disaggregate the data it used in its procedure to address important factors, such as the number of franchisees and differences between franchisee sales and company-owned sales. (AS 2305.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nThe firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer used multiple point-of-sale (POS) applications to initiate and process revenue transactions. The firm selected for testing two controls related to the automated calculation of sales discounts and the review of those discounts by designated individuals with certain access levels. \nThe firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s accounts receivable. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm selected for testing a control over the issuer’s review of the fair value analyses associated with the acquired assets and assumed liabilities. For the control selected, the firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm selected for testing a control over the issuer’s review of the fair value analyses associated with the acquired assets and assumed liabilities. For the control selected, the firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not identify and test any controls over the prospective financial information developed by the issuer and used by the company’s specialist to determine the fair value of certain intangible assets acquired. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform any procedures to test the existence of the fixed assets acquired. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform any procedures to test the existence of the fixed assets acquired. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• For the valuation of fixed assets, the firm did not perform sufficient procedures to evaluate whether the methods used by the company’s specialist were appropriate. Specifically, the firm did not evaluate whether the data and significant assumptions were appropriately applied under the applicable reporting framework. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• For the valuation of certain intangible assets, the firm did not perform procedures to test the financial projections, including taking into account the issuer’s intent and ability to carry out the projections, used in determining the fair values, beyond tracing the projections for certain years to issuer-prepared schedules or comparing them to certain historical financial statements. (AS 1105.A8b; AS 2501.16 and .17) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• For the valuation of certain intangible assets, the firm did not perform procedures to test the financial projections, including taking into account the issuer’s intent and ability to carry out the projections, used in determining the fair values, beyond tracing the projections for certain years to issuer-prepared schedules or comparing them to certain historical financial statements. (AS 1105.A8b; AS 2501.16 and .17) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• For the valuation of certain intangible assets, the firm did not perform procedures to test the financial projections, including taking into account the issuer’s intent and ability to carry out the projections, used in determining the fair values, beyond tracing the projections for certain years to issuer-prepared schedules or comparing them to certain historical financial statements. (AS 1105.A8b; AS 2501.16 and .17) \n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The company’s specialists used certain external data in developing the assumptions used in the valuation of certain acquired intangible assets. The firm did not perform any procedures to evaluate the relevance and reliability of the data used. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "17", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the company’s specialists in the valuation of certain acquired assets and assumed liabilities. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the reasonableness of certain other significant assumptions developed by the company’s specialists in the valuation of certain acquired assets and assumed liabilities, because its procedures were limited to comparing the assumption to either (1) external data (without evaluating the relevance and reliability of the data as noted above), (2) the same assumption used to value another acquired asset, or (3) issuer-prepared schedules. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform any procedures to evaluate the relevance and reliability of certain data the firm used to evaluate the reasonableness of certain components of another significant assumption developed by the company’s specialist in its valuation of certain acquired assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform any procedures to evaluate the relevance and reliability of certain data the firm used to evaluate the reasonableness of certain components of another significant assumption developed by the company’s specialist in its valuation of certain acquired assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "20", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the relevance and reliability of one of the company’s specialists’ work related to certain assumed liabilities because it did not evaluate the restriction the specialist placed on the intended users of the report, and perform additional procedures to address the matter. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "20", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and engaged multiple specialists to determine the fair value of certain acquired assets, including acquired intangible assets, and certain assumed liabilities. The following deficiency was identified: \n• The firm did not perform sufficient procedures to evaluate the relevance and reliability of one of the company’s specialists’ work related to certain assumed liabilities because it did not evaluate the restriction the specialist placed on the intended users of the report, and perform additional procedures to address the matter. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "21", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "494", "Firm Names": "Schechter Dokken Kanter Andrews & Selcer Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "21", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n· The firm selected for testing a control over one revenue stream that consisted of the issuer’s reconciliation of revenue data between the billing system and general ledger system. The firm did not identify and test any controls over the accuracy and completeness of the information used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n· The firm selected for testing other controls over this revenue stream that consisted of the issuer’s reconciliation of (1) revenue data between the general ledger system and one of its financial reporting systems and (2) revenue data among certain financial reporting systems. The firm did not sufficiently test the operating effectiveness of these controls because it did not evaluate how identified deficiencies in certain systems interface controls between these systems could impact the operating effectiveness of the revenue reconciliation controls. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n· The firm selected for testing a control over another revenue stream that consisted of the issuer’s (1) review of customer contracts in excess of a specified threshold and (2) determination as to whether the revenue from the selected contracts was recognized in conformity with the relevant accounting standard. The firm did not evaluate whether the threshold used in the control could effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n· The firm’s substantive procedures to test certain revenue included performing substantive analytical procedures. The expectations the firm used were not sufficiently precise to identify differences that could be potential material misstatements, individually or in the aggregate, because the firm did not disaggregate the data used to develop the expectations to address important factors that have an effect on the recognition of the revenue. (AS 2305.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified: \n· The firm did not perform substantive procedures to test certain other revenue beyond (1) examining customer invoices produced by the issuer for a sample of revenue transactions, (2) verifying the mathematical accuracy of those invoices and reconciling the total invoiced amounts to the general ledger, and (3) obtaining customer contracts for the selected revenue transactions and summarizing certain terms of those contracts. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to (1) test the existence and cost of certain inventory and (2) evaluate whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to evaluate the reasonableness of the allowance for slow moving inventory. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1253", "Firm Names": "KPMG SA", "Inspection Year": "2024", "Country": "France", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for purposes of identifying and selecting journal entries for testing and communicated to the principal auditor that its audit procedures would include an examination of all journal entries and other adjustments that met these criteria. In identifying and selecting journal entries that met the criteria, the firm did not perform sufficient procedures to test those journal entries because it excluded certain journal entries from testing without having an appropriate rationale for their exclusion. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1381", "Firm Names": "KAP Purwantono, Sungkoro & Surja", "Inspection Year": "2024", "Country": "Indonesia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control over certain assets that consisted of the issuer’s review of the assets, including their presentation and disclosure in the financial statements. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of the presentation and disclosure of these assets. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1381", "Firm Names": "KAP Purwantono, Sungkoro & Surja", "Inspection Year": "2024", "Country": "Indonesia", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control over certain assets that consisted of the issuer’s review of the assets, including their presentation and disclosure in the financial statements. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of the presentation and disclosure of these assets. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that the issuer’s recognition of revenue was not in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer performed an assessment of certain assets for recoverability when the firm was aware of events or changes in circumstances that existed and indicated that the carrying value may not be recoverable. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer performed an assessment of certain assets for recoverability when the firm was aware of events or changes in circumstances that existed and indicated that the carrying value may not be recoverable. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a disclosure related to these assets required by GAAP. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a disclosure related to these assets required by GAAP. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the appropriateness of the issuer’s accounting for certain changes to a significant account, beyond obtaining external invoices. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6235", "Firm Names": "Dylan Floyd Accounting & Consulting", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "26-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the appropriateness of the issuer’s accounting for certain changes to a significant account, beyond obtaining external invoices. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the reserve for excess and obsolete (E&O) inventory was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of a significant assumption the issuer used to develop the E&O reserve, beyond reading an issuer-prepared memorandum. (AS 2501.16)\nUnrelated to our review, the issuer reevaluated its accounting for its inventory and concluded that material misstatements existed that had not been previously identified. The issuer corrected these misstatements in a restatement of its financial statements in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of the majority of its inventory. The firm did not perform sufficient substantive procedures to test this inventory because the firm did not evaluate the methodology and selection parameters used by the issuer or perform other procedures to determine whether the issuer's cycle-count procedures were sufficiently reliable to produce results substantially the same as those that would have been obtained by a count of all items each year. (AS 2510.11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer determined its excess and obsolete (E&O) reserve for certain inventory based, in part, on a calculation of the amount of this inventory it expected to use to manufacture certain products. The firm did not identify and test any controls over this calculation. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in certain of its substantive procedures to test this E&O reserve was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the E&O reserve was to test the issuer’s process. The firm did not sufficiently evaluate the reasonableness of certain significant assumptions the issuer used to develop the E&O reserve because the firm did not perform procedures, beyond inquiring of management, to evaluate certain significant differences between these assumptions and the issuer’s recent experience. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the unit cost of certain categories of inventory. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The issuer held certain inventory at locations owned by external parties. The firm performed confirmation procedures to test the existence of this inventory but did not maintain control over the confirmation requests because the issuer sent the requests. (AS 2310.28)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to certain of the issuer’s inventory disclosures, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of its financial statement disclosures but did not test the aspect of the control that addressed the accuracy and completeness of the issuer-prepared schedules used to prepare these inventory disclosures. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to certain of the issuer’s inventory disclosures, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of its financial statement disclosures but did not test the aspect of the control that addressed the accuracy and completeness of the issuer-prepared schedules used to prepare these inventory disclosures. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "With respect to certain of the issuer’s inventory disclosures, the following deficiencies were identified:\n· The firm used these issuer-prepared schedules in its substantive testing of these inventory disclosures but did not test, or sufficiently test controls over, the accuracy and completeness of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of a significant assumption used to develop a reserve for certain customer discounts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of this assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of a significant assumption used to develop a reserve for certain customer discounts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of this assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The issuer assigned a loan risk rating to its commercial loans. The loan risk rating was an important input in estimating the ACL and determining whether a loan would be individually or collectively evaluated for impairment. The firm did not identify and test any controls over the assignment of the loan risk rating to a certain population of these loans. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not identify that the auditor-employed specialist did not evaluate the reasonableness of the significant assumptions that the issuer used to develop the quantitative and economic reserve components. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not identify that the auditor-employed specialist did not evaluate the reasonableness of the significant assumptions that the issuer used to develop the quantitative and economic reserve components. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not identify that the auditor-employed specialist did not evaluate the reasonableness of the significant assumptions that the issuer used to develop the quantitative and economic reserve components. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not evaluate the reasonableness of the significant assumptions related to the qualitative factors that the issuer used to develop the qualitative reserve component. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether the methods the issuer used to develop the ACL were in conformity with the requirements of GAAP because it did not evaluate whether the issuer’s economic reserve component was duplicative of a portion of the qualitative reserve component that also related to economic conditions. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm did not evaluate the relevance of certain external data the issuer used in developing the economic reserve and the qualitative reserve. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer’s ACL included reserves for loans collectively evaluated for impairment and for loans individually evaluated for impairment. For loans that were collectively evaluated for impairment, the issuer estimated quantitative, qualitative, and economic reserve components. The following deficiencies were identified:\n· The firm did not evaluate the relevance of certain external data the issuer used in developing the economic reserve and the qualitative reserve. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain issuer-produced data in its substantive testing of one type of revenue and the related deferred revenue but did not test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used certain issuer-produced data in its substantive testing of one type of revenue and the related deferred revenue but did not test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures related to revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to revenue and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures related to revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to revenue and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures related to revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to revenue and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures related to revenue under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to revenue and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Payroll Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test payroll expenses included performing substantive analytical procedures. The firm used employee headcount information produced by a service organization to develop its expectations but did not evaluate the reliability of this information. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test two types of revenue included selecting a sample of transactions for testing. The following deficiencies were identified:\n· For one of these revenue types, the issuer recognized revenue for certain of these transactions based on labor hours recorded in the issuer’s time system. The firm did not perform procedures to test the appropriateness of the labor hours allocated to these transactions. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test two types of revenue included selecting a sample of transactions for testing. The following deficiencies were identified:\n· For For both of these revenue types, the firm did not evaluate whether the issuer was acting as a principal or as an agent for these transactions. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used various system-generated reports and issuer-prepared schedules in its substantive testing of certain of the issuer’s revenue and related disclosures but did not test, or test any controls over, the accuracy and/or completeness of these reports and schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Pension Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer provided a company’s specialist with certain demographic and employment data that were used to estimate the issuer’s projected benefit obligation. The firm did not perform sufficient procedures to test the accuracy and completeness of these data because it (1) did not test the accuracy of certain important data attributes for the participants selected for testing and (2) limited its completeness procedures to testing whether certain participants were appropriately removed from the data. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe firm used issuer-prepared schedules in its substantive testing of certain revenue disclosures but did not perform procedures to test, or test any controls over, the accuracy and/or completeness of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "23", "Firm Names": "Baker Tilly US, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included performing substantive analytical procedures. The firm used certain issuer-produced production volume data to develop its expectations but did not sufficiently test, or test any controls over, the accuracy and completeness of the production volume data because the firm’s procedures were limited to comparing the production volume data to other issuer-produced data, which were used to derive revenue. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its earnout liability, which is a provision for contingent payments. The firm did not evaluate the specific review procedures the control owners performed to assess the reasonableness of the method, data, and assumptions used in the valuation of the earnout liability. (AS 2201.42 and .44)\nUnrelated to our review, the issuer reevaluated its controls over its earnout liability 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its earnout liability, which is a provision for contingent payments. The firm did not evaluate the specific review procedures the control owners performed to assess the reasonableness of the method, data, and assumptions used in the valuation of the earnout liability. (AS 2201.42 and .44)\nUnrelated to our review, the issuer reevaluated its controls over its earnout liability 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the fair value of the earnout liability was to test the issuer’s process. The firm recalculated the issuer’s estimate using a software audit tool. The firm did not perform sufficient substantive procedures to evaluate the method used by the issuer because it did not test the functionality of this tool. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not test, or sufficiently test controls over, the accuracy of certain data that the issuer used to calculate the earnout liability. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Segment Reporting", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over segment reporting. (AS 2201.39)\nUnrelated to our review, the issuer reevaluated its controls over segment reporting 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Segment Reporting", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to evaluate whether the issuer’s determination of its reportable segments was in conformity with FASB ASC Topic 280, Segment Reporting, beyond reading an issuer-prepared memorandum. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of manual journal entries. The firm did not identify and test any controls over the completeness of a system-generated report used in the operation of this control. (AS 2201.39)\nUnrelated to our review, the issuer reevaluated its controls over journal entries 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time by estimating its progress toward completion. The firm did not perform procedures to test this revenue, beyond inspecting the contract and inquiring of project managers, for a sample of contracts. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures under FASB ASC Topic 606, Revenue from Contracts with Customers, related to the method used to recognize revenue for one type of revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain required disclosures under FASB ASC Topic 606, Revenue from Contracts with Customers, related to the method used to recognize revenue for one type of revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the existence of certain inventory. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 210, Balance Sheet, related to major classes of inventory. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 210, Balance Sheet, related to major classes of inventory. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer calculated a reserve for excess and obsolete inventory by applying established percentages to each inventory aging category. The following deficiencies were identified:\n· The firm selected for testing a control over the issuer’s review of the reserve for excess and obsolete inventory. The firm did not identify and test any controls over the accuracy of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer calculated a reserve for excess and obsolete inventory by applying established percentages to each inventory aging category. The following deficiencies were identified:\n· The firm used these data in its substantive procedures but did not perform any procedures to test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s review of journal entries related to inventory. The firm did not identify and test any controls over the accuracy and completeness of certain information used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain adjustments the issuer made to its inventory. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls related to the issuer’s evaluation of long-lived assets for possible impairment. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on customer usage data, which was produced by one of the issuer’s information technology (IT) systems. The firm did not perform procedures to test these data, beyond comparing these data to information derived from this IT system. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on customer usage data, which was produced by one of the issuer’s information technology (IT) systems. The firm did not perform procedures to test these data, beyond comparing these data to information derived from this IT system. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "To identify and select journal entries for testing, the firm identified fraud characteristics. For certain of these fraud characteristics, the firm did not perform any procedures to identify journal entries that had these characteristics. (AS 2401.61)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time using an input method based on the labor hours incurred or number of users. The firm did not perform substantive procedures to test whether the issuer satisfied its performance obligations before recognizing this revenue, beyond comparing the number of users and labor hours incurred to issuer-produced reports. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time using an input method based on the labor hours incurred or number of users. The firm did not perform substantive procedures to test whether the issuer satisfied its performance obligations before recognizing this revenue, beyond comparing the number of users and labor hours incurred to issuer-produced reports. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm did not identify and evaluate the issuer’s omission of certain required disclosures under FASB ASC Topic 805, Business Combinations, related to the amounts of revenue and earnings of the acquired business since the acquisition date. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to this business combination and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "659", "Firm Names": "Moss Adams LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm did not identify and evaluate the issuer’s omission of certain required disclosures under FASB ASC Topic 805, Business Combinations, related to the amounts of revenue and earnings of the acquired business since the acquisition date. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to this business combination and determined that certain disclosures were omitted. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the issuer’s determination of the ACL. The issuer used certain system-generated reports that it obtained from an application that was hosted by a service organization in the performance of these controls. The firm obtained the service auditor’s report for this service organization and identified certain complementary user controls related to user access that the service auditor’s report described as necessary. The firm identified control deficiencies in its testing of these complementary user controls and selected for testing a compensating control that consisted of the issuer’s review of user access. The firm did not identify and test any controls over the accuracy and completeness of the user population used in the operation of this compensating control. (AS 2201.68)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using certain qualitative factors. The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process. The following deficiencies were identified:\n· The firm tested one of the issuer’s controls over the determination of the ACL during an interim period. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of certain significant assumptions related to the qualitative factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using certain qualitative factors. The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process. The following deficiencies were identified:\n· The firm tested one of the issuer’s controls over the determination of the ACL during an interim period. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of certain significant assumptions related to the qualitative factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "55", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using certain qualitative factors. The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process. The following deficiencies were identified:\n· The firm tested one of the issuer’s controls over the determination of the ACL during an interim period. The firm did not perform procedures to update the results of its testing from the interim date to year end. (AS 2201.55)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using certain qualitative factors. The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer had a reasonable basis for certain significant assumptions related to the qualitative factors. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s determination of the categorization of its available-for-sale (AFS) securities within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the fair values of a sample of AFS securities. The firm did not assess whether the extent and timing of the issuer’s review was sufficient to address the risks of material misstatement. Further, the firm did not evaluate whether the items identified for follow up by the control owner were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the fair values of a sample of AFS securities. The firm did not assess whether the extent and timing of the issuer’s review was sufficient to address the risks of material misstatement. Further, the firm did not evaluate whether the items identified for follow up by the control owner were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test the fair values of these securities was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions used to develop the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions used to develop the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer estimated the ACL using various significant assumptions. The firm did not evaluate whether the issuer had a reasonable basis for certain significant assumptions it used. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s reviews of certain assumptions used to estimate the quantitative component of the ACL. In evaluating the design of this control, the firm did not evaluate whether a threshold that the control owner used to identify items for investigation was sufficiently precise to detect material misstatements. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s reviews of certain assumptions used to estimate the quantitative component of the ACL. In evaluating the design of this control, the firm did not evaluate the specific review procedures that the control owner performed to evaluate the relevance of external information used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer’s reviews of certain assumptions used to estimate the quantitative component of the ACL. In evaluating the design of this control, the firm did not evaluate the specific review procedures that the control owner performed to evaluate the relevance of external information used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to evaluate the reasonableness of certain significant assumptions the issuer used to estimate the ACL because the firm did not evaluate (1) whether the assumptions were consistent with other external factors, including economic conditions, and (2) the relevance of certain market information the issuer used. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to evaluate the reasonableness of certain significant assumptions the issuer used to estimate the ACL because the firm did not evaluate (1) whether the assumptions were consistent with other external factors, including economic conditions, and (2) the relevance of certain market information the issuer used. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to evaluate the reasonableness of certain significant assumptions the issuer used to estimate the ACL because the firm did not evaluate (1) whether the assumptions were consistent with other external factors, including economic conditions, and (2) the relevance of certain market information the issuer used. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The following deficiencies were identified:\n· The firm did not identify and test any controls over certain assets acquired and liabilities assumed as of the acquisition date. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The following deficiencies were identified:\n· The issuer engaged a specialist to determine the fair values of certain acquired assets as of the acquisition date. The firm did not perform procedures to test, or test controls over, the accuracy of certain issuer-produced data used by the company’s specialist to determine the fair values of these assets. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "55", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The firm selected for testing a control that included the issuer’s reviews of loan risk ratings and tested the control at an interim date. The firm did not perform procedures to update the results of its testing from the interim date to year end. (AS 2201.55)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing a control that included the issuer’s review of the fair values of acquired assets and the related significant assumptions. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these significant assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing a control that included the issuer’s review of the fair values of acquired assets and the related significant assumptions. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain of these significant assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing a control that included the issuer’s review of the fair values of acquired assets and the related significant assumptions. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that included the issuer’s review of the loan risk ratings assigned to the acquired loans. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that included the issuer’s review of the loan risk ratings assigned to the acquired loans. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm also selected for testing a control that included the issuer’s review of the loan risk ratings assigned to the acquired loans. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the completeness and existence of the assets acquired and the liabilities assumed at the acquisition date. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Notes Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer engaged specialists to assist the issuer in estimating the amount of certain notes receivable and collectability of these notes receivable at year-end using various significant assumptions. The firm’s approach for testing these notes receivable was to review and test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialists, beyond comparing certain of these assumptions to assumptions used in a prior year. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Notes Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer engaged specialists to assist the issuer in estimating the amount of certain notes receivable and collectability of these notes receivable at year-end using various significant assumptions. The firm’s approach for testing these notes receivable was to review and test the issuer’s process. The following deficiencies were identified:\n· The firm’s approach for evaluating the reasonableness of another assumption was to develop an expectation of this assumption. The firm did not test, or test any controls over, the accuracy and completeness of the data produced by the issuer that the firm used to develop its expectation. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Notes Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer engaged specialists to assist the issuer in estimating the amount of certain notes receivable and collectability of these notes receivable at year-end using various significant assumptions. The firm’s approach for testing these notes receivable was to review and test the issuer’s process. The following deficiencies were identified:\n· The firm used an auditor-employed specialist to evaluate another assumption the company’s specialist used. The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external information used by the company’s specialist. (AS 1105.A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Notes Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer engaged specialists to assist the issuer in estimating the amount of certain notes receivable and collectability of these notes receivable at year-end using various significant assumptions. The firm’s approach for testing these notes receivable was to review and test the issuer’s process. The following deficiencies were identified:\n· The firm used an auditor-employed specialist to evaluate another assumption the company’s specialist used. The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external information used by the company’s specialist. (AS 1105.A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Notes Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer engaged specialists to assist the issuer in estimating the amount of certain notes receivable and collectability of these notes receivable at year-end using various significant assumptions. The firm’s approach for testing these notes receivable was to review and test the issuer’s process. The following deficiencies were identified:\n· The firm used an auditor-employed specialist to evaluate another assumption the company’s specialist used. The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external information used by the company’s specialist. (AS 1105.A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The firm capitalized transaction costs related to the business combination and the convertible note issuance. The firm did not (1) evaluate whether the issuer’s capitalization of these costs was in conformity with FASB ASC Topic 805, Business Combinations, and (2) evaluate the reliability of certain external information it used to test these costs. (AS 1105.04 and .06; AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The convertible note included embedded features that required bifurcation in accordance with FASB ASC Topic 815, Derivatives and Hedging. The firm did not perform any procedures to determine the fair value of these embedded features, beyond asserting the value was not material as the probability of occurrence of the associated contingent events was remote. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination and issued a convertible note. The following deficiencies were identified:\n· The convertible note included embedded features that required bifurcation in accordance with FASB ASC Topic 815, Derivatives and Hedging. The firm did not perform any procedures to determine the fair value of these embedded features, beyond asserting the value was not material as the probability of occurrence of the associated contingent events was remote. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer tracked certain of its inventory in a system that was hosted by a service organization. The firm used information from this system in its testing of this inventory but did not perform any procedures to evaluate the reliability of this information. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain inventory included performing substantive analytical procedures. The firm did not determine whether the expectations it used in these substantive analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain inventory included performing substantive analytical procedures. The firm did not determine whether the expectations it used in these substantive analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "For certain accounts receivable, the firm sent positive confirmation requests to the issuer's customers and received no responses. The firm did not perform alternative procedures that provided sufficient appropriate audit evidence that these balances represented valid receivable balances as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain accounts receivable, the firm sent positive confirmation requests to the issuer's customers and received no responses. The firm did not perform alternative procedures that provided sufficient appropriate audit evidence that these balances represented valid receivable balances as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For certain accounts receivable, the firm sent positive confirmation requests to the issuer's customers and received no responses. The firm did not perform alternative procedures that provided sufficient appropriate audit evidence that these balances represented valid receivable balances as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain unbilled receivables included selecting a sample of customer balances for testing. The firm did not perform procedures to determine whether the performance obligation had been satisfied when revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond inquiry, to test the amounts relieved from inventory and recorded in cost of goods sold. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the calculation of gross premiums earned and unearned premiums. The control owner utilized system queries in performing its review. The firm’s testing of this control was not sufficient because its procedures were limited to inquiring of the control owner and reviewing query parameters for reasonableness. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unearned Premiums", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the calculation of gross premiums earned and unearned premiums. The control owner utilized system queries in performing its review. The firm’s testing of this control was not sufficient because its procedures were limited to inquiring of the control owner and reviewing query parameters for reasonableness. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the calculation of gross premiums earned and unearned premiums. The control owner utilized system queries in performing its review. The firm’s testing of this control was not sufficient because its procedures were limited to inquiring of the control owner and reviewing query parameters for reasonableness. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unearned Premiums", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the calculation of gross premiums earned and unearned premiums. The control owner utilized system queries in performing its review. The firm’s testing of this control was not sufficient because its procedures were limited to inquiring of the control owner and reviewing query parameters for reasonableness. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls that addressed the risk that revenue was recognized from policies with premiums that were deemed uncollectible. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Unearned Premiums", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls that addressed the risk that revenue was recognized from policies with premiums that were deemed uncollectible. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the transfer of certain insurance reserve data from one system to another system. The firm did not test the accuracy and completeness of the transfer of these data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the transfer of certain insurance reserve data from one system to another system. The firm did not test the accuracy and completeness of the transfer of these data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue consisted of performing substantive analytical procedures and, for certain revenue, tests of details. The following deficiencies were identified:\n· The firm used certain data in its substantive analytical procedures but did not test, or test any controls over, the accuracy and completeness of these data. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue consisted of performing substantive analytical procedures and, for certain revenue, tests of details. The following deficiencies were identified:\n· The firm’s tests of details for certain revenue included recalculating revenue for a sample of revenue transactions. The firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain issuer-produced information it used to recalculate this revenue. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm performed independent test counts of inventory after year end. The following deficiencies were identified:\n· The firm did not compare the inventory listing it used to perform its substantive procedures to the recorded balance. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm performed independent test counts of inventory after year end. The following deficiencies were identified:\n· The firm did not apply tests of intervening transactions in inventory between year end and the date of its test counts. (AS 2510.12)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the unit cost of inventory consisted of (1) selecting a sample of raw materials for testing and (2) testing the issuer’s process for allocating labor and overhead costs to inventory. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test the raw materials cost because its procedures were limited to comparing the recorded cost to supporting documentation for the most recent purchase. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the unit cost of inventory consisted of (1) selecting a sample of raw materials for testing and (2) testing the issuer’s process for allocating labor and overhead costs to inventory. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain issuer-produced information that it used in its testing of the allocated labor and overhead costs. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the unit cost of inventory consisted of (1) selecting a sample of raw materials for testing and (2) testing the issuer’s process for allocating labor and overhead costs to inventory. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiring of management, to evaluate the reasonableness of certain significant assumptions used by the issuer to allocate overhead costs. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the unit cost of inventory consisted of (1) selecting a sample of raw materials for testing and (2) testing the issuer’s process for allocating labor and overhead costs to inventory. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the issuer’s reserve for excess and obsolete inventory. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included selecting samples of transactions for testing. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test controls over, the completeness of the populations it used to make its selections. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included selecting samples of transactions for testing. The following deficiencies were identified:\n· The issuer recognized certain of this revenue upon (1) delivery and customer acceptance of products or (2) completion of its services. For certain selections, the firm did not perform procedures to test whether (1) the customer had accepted the products or (2) the issuer had completed its services. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included selecting samples of transactions for testing. The following deficiencies were identified:\n· The issuer recognized certain of this revenue upon (1) delivery and customer acceptance of products or (2) completion of its services. For certain selections, the firm did not perform procedures to test whether (1) the customer had accepted the products or (2) the issuer had completed its services. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· The firm’s approach to substantively test the fair value of one of these provisions consisted of developing an independent expectation using an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it developed. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· The firm’s approach to substantively test the fair value of one of these provisions consisted of developing an independent expectation using an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it developed. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· The firm’s approach to substantively test the fair value of one of these provisions consisted of developing an independent expectation using an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it developed. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· The firm did not perform any other procedures to evaluate the issuer’s accounting for, and presentation and disclosure of, this provision. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· The firm did not perform any other procedures to evaluate the issuer’s accounting for, and presentation and disclosure of, this provision. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· For another provision, the firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 718, Compensation—Stock Compensation, related to the nature and terms of the provision and the potential effects of the provision on shareholders. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into a merger agreement, which included provisions for contingent payments to the sellers upon the satisfaction of certain criteria. The following deficiencies were identified:\n· For another provision, the firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 718, Compensation—Stock Compensation, related to the nature and terms of the provision and the potential effects of the provision on shareholders. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain arrangements as single performance obligations satisfied at a point in time. The firm selected a sample of these revenue transactions for testing. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate (1) the issuer’s identification of the customers in these arrangements and (2) whether the issuer was acting as a principal or as an agent. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain arrangements as single performance obligations satisfied at a point in time. The firm selected a sample of these revenue transactions for testing. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer recognized revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers, because it did not evaluate (1) the issuer’s identification of the customers in these arrangements and (2) whether the issuer was acting as a principal or as an agent. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain arrangements as single performance obligations satisfied at a point in time. The firm selected a sample of these revenue transactions for testing. The following deficiencies were identified:\n· The firm did not perform procedures to test whether the performance obligations had been satisfied before revenue was recognized, beyond comparing the transactions selected for testing to an issuer-produced report. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain arrangements as single performance obligations satisfied at a point in time. The firm selected a sample of these revenue transactions for testing. The following deficiencies were identified:\n· The firm did not perform procedures to test whether the performance obligations had been satisfied before revenue was recognized, beyond comparing the transactions selected for testing to an issuer-produced report. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer’s accounting for certain other transactions as revenue was appropriate because it did not evaluate whether one or more of the scope exceptions under FASB ASC Topic 606 were applicable. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer’s accounting for certain other transactions as revenue was appropriate because it did not evaluate whether one or more of the scope exceptions under FASB ASC Topic 606 were applicable. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "25", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment. The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of an intangible asset for possible impairment. The firm’s approach to substantively test this assessment was to test the issuer’s process with the assistance of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of an intangible asset for possible impairment. The firm’s approach to substantively test this assessment was to test the issuer’s process with the assistance of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of an intangible asset for possible impairment. The firm’s approach to substantively test this assessment was to test the issuer’s process with the assistance of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded a partial valuation allowance against its recorded deferred tax assets based on forecasted taxable income, which included significant assumptions developed by the issuer that were also used in the issuer’s intangible asset impairment assessment discussed above. The firm did not sufficiently evaluate the reasonableness of these significant assumptions, including taking into account the issuer’s intent and ability to carry out these assumptions, because its procedures were limited to inquiring of management and comparing these assumptions to historical financial information and written plans. Further, the firm did not evaluate certain significant differences between the issuer’s historical experience and these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded a partial valuation allowance against its recorded deferred tax assets based on forecasted taxable income, which included significant assumptions developed by the issuer that were also used in the issuer’s intangible asset impairment assessment discussed above. The firm did not sufficiently evaluate the reasonableness of these significant assumptions, including taking into account the issuer’s intent and ability to carry out these assumptions, because its procedures were limited to inquiring of management and comparing these assumptions to historical financial information and written plans. Further, the firm did not evaluate certain significant differences between the issuer’s historical experience and these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer recorded a partial valuation allowance against its recorded deferred tax assets based on forecasted taxable income, which included significant assumptions developed by the issuer that were also used in the issuer’s intangible asset impairment assessment discussed above. The firm did not sufficiently evaluate the reasonableness of these significant assumptions, including taking into account the issuer’s intent and ability to carry out these assumptions, because its procedures were limited to inquiring of management and comparing these assumptions to historical financial information and written plans. Further, the firm did not evaluate certain significant differences between the issuer’s historical experience and these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer recorded a partial valuation allowance against its recorded deferred tax assets based on forecasted taxable income, which included significant assumptions developed by the issuer that were also used in the issuer’s intangible asset impairment assessment discussed above. The firm did not sufficiently evaluate the reasonableness of these significant assumptions, including taking into account the issuer’s intent and ability to carry out these assumptions, because its procedures were limited to inquiring of management and comparing these assumptions to historical financial information and written plans. Further, the firm did not evaluate certain significant differences between the issuer’s historical experience and these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the issuer’s income tax provision and deferred tax accounts, because its procedures were limited to inquiring of management and comparing forecasted taxable income to historical financial information and written plans. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on transactions that occurred on applications maintained by external parties. The following deficiencies were identified:\n· For two types of revenue, the firm did not perform substantive procedures to evaluate whether the performance obligations had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on transactions that occurred on applications maintained by external parties. The following deficiencies were identified:\n· For two types of revenue, the firm did not perform substantive procedures to evaluate whether the performance obligations had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on transactions that occurred on applications maintained by external parties. The following deficiencies were identified:\n· To test a third type of revenue, the firm sent positive confirmation requests to the external parties that maintained the applications. The firm’s confirmation procedures were not sufficient because the firm did not consider whether the external parties would have the information necessary to confirm that the issuer’s performance obligations had been satisfied. (AS 2310.26)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on transactions that occurred on applications maintained by external parties. The following deficiencies were identified:\n· To test a third type of revenue, the firm sent positive confirmation requests to the external parties that maintained the applications. For the items for which the requested confirmations were not returned, the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the recorded amounts of revenue were accurate as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test controls over, the accuracy and completeness of (1) historical financial information the firm used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows and (2) the carrying value of certain asset groups. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test controls over, the accuracy and completeness of (1) historical financial information the firm used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows and (2) the carrying value of certain asset groups. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill, the firm did not (1) perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist or (2) identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of a component of another significant assumption developed by the company’s specialist. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill for one reporting unit, the firm did not sufficiently evaluate the reasonableness of significant assumptions developed by the issuer related to forecasted cash flows because its procedures were limited to (1) comparing the assumptions for one forecasted period to historical experience and (2) reviewing new revenue contracts that represented a small percentage of forecasted revenue. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of intangible assets and goodwill for one reporting unit, the firm did not sufficiently evaluate the reasonableness of significant assumptions developed by the issuer related to forecasted cash flows because its procedures were limited to (1) comparing the assumptions for one forecasted period to historical experience and (2) reviewing new revenue contracts that represented a small percentage of forecasted revenue. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of certain intangible assets and goodwill for another reporting unit, the firm did not evaluate the relevance and reliability of certain industry information it used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of certain intangible assets and goodwill for another reporting unit, the firm did not evaluate the relevance and reliability of certain industry information it used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of certain intangible assets and goodwill for another reporting unit, the firm did not evaluate the relevance and reliability of certain industry information it used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform assessments of goodwill and intangible assets for possible impairment using various significant assumptions, including assumptions related to forecasted cash flows. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· For the assessments of certain intangible assets and goodwill for another reporting unit, the firm did not evaluate the relevance and reliability of certain industry information it used in evaluating the reasonableness of the significant assumptions related to forecasted cash flows. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Financial Statement Presentation", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer disposed of two business units. The firm did not perform sufficient procedures to evaluate whether these business units should have been reported as discontinued operations in conformity with FASB ASC Topic 205, Presentation of Financial Statements, because it did not consider certain information in evaluating whether the discontinued operations represented a strategic shift. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple service organizations to host and/or maintain an information-technology (IT) system that the issuer used to initiate, process, and record transactions related to revenue and related accounts, inventory, and long-lived assets at certain business units. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs) discussed below, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple service organizations to host and/or maintain an information-technology (IT) system that the issuer used to initiate, process, and record transactions related to revenue and related accounts, inventory, and long-lived assets at certain business units. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs) discussed below, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple service organizations to host and/or maintain an information-technology (IT) system that the issuer used to initiate, process, and record transactions related to revenue and related accounts, inventory, and long-lived assets at certain business units. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the deficiencies in the firm’s testing of IT general controls (ITGCs) discussed below, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing complementary user controls over the issuer’s granting and monitoring of user access to this system but did not evaluate the specific review procedures that the control owners performed to determine whether to grant access to users or whether access that had been previously approved continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing a complementary user control over change management. The firm did not perform sufficient procedures to test, or test controls over, the completeness of the population of changes that the firm used in its testing of this control because it did not evaluate whether the system was configured to track all changes made to the production environment. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing a complementary user control over change management. The firm did not perform sufficient procedures to test, or test controls over, the completeness of the population of changes that the firm used in its testing of this control because it did not evaluate whether the system was configured to track all changes made to the production environment. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm selected for testing a complementary user control over change management. The firm did not perform sufficient procedures to test, or test controls over, the completeness of the population of changes that the firm used in its testing of this control because it did not evaluate whether the system was configured to track all changes made to the production environment. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented certain other complementary user controls. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. These service organizations used sub-service organizations for certain functions. The following deficiencies were identified:\n· The firm did not obtain an understanding of, or test, any relevant controls at certain sub-service organizations. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For revenue at three business units, which was affected by the ITGC audit deficiencies discussed above, the firm selected for testing various controls that addressed the recognition of revenue when performance obligations were satisfied. The firm did not identify and test any controls over the accuracy and completeness of certain information used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For inventory at two business units, which was affected by the ITGC audit deficiencies discussed above, the following additional deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s performance of physical inventory counts. The firm did not test the aspects of these controls that addressed whether an accurate and complete count had occurred. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For inventory at two business units, which was affected by the ITGC audit deficiencies discussed above, the following additional deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s performance of physical inventory counts. The firm did not test the aspects of these controls that addressed whether an accurate and complete count had occurred. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For inventory at two business units, which was affected by the ITGC audit deficiencies discussed above, the following additional deficiencies were identified:\n· The firm did not perform any procedures to evaluate the issuer’s classification of certain items as inventory. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For long-lived assets at one business unit, which was affected by the ITGC audit deficiencies discussed above, the following additional deficiencies were identified:\n· The firm did not identify and test any controls related to the issuer’s evaluation of long-lived assets for possible impairment. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For long-lived assets at one business unit, which was affected by the ITGC audit deficiencies discussed above, the following additional deficiencies were identified:\n· The firm did not perform any substantive procedures to test long-lived assets for possible impairment. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts related to the development and sale of real estate. In conjunction with these contracts, the issuer received deposits from customers that were recorded as deferred revenue. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to unsatisfied (or partially unsatisfied) performance obligations and when the issuer expects to recognize this revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts related to the development and sale of real estate. In conjunction with these contracts, the issuer received deposits from customers that were recorded as deferred revenue. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to unsatisfied (or partially unsatisfied) performance obligations and when the issuer expects to recognize this revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts related to the development and sale of real estate. In conjunction with these contracts, the issuer received deposits from customers that were recorded as deferred revenue. The following deficiencies were identified:\n· The firm did not evaluate the appropriateness of the issuer’s classification of deferred revenue associated with these contracts as a current liability. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "67", "Description in the Firm's Inspection Report": "During the year, the issuer recorded a credit loss associated with amounts owed by a related party. The firm did not evaluate whether the business purpose (or the lack thereof) of this transaction indicated that it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding this transaction. (AS 2401.67; AS 2410.11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer recorded a credit loss associated with amounts owed by a related party. The firm did not evaluate whether the business purpose (or the lack thereof) of this transaction indicated that it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding this transaction. (AS 2401.67; AS 2410.11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain long-lived assets for possible impairment. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialists. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialists. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialists. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not perform procedures to test the accuracy of certain issuer-produced data that the company’s specialists used to develop the fair values of these assets. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because it did not evaluate whether the independent expectations of the fair values as a range encompassed only reasonable outcomes and were supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because it did not evaluate whether the independent expectations of the fair values as a range encompassed only reasonable outcomes and were supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "25", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the work of the auditor-employed specialist did not provide sufficient appropriate audit evidence because it did not evaluate whether the independent expectations of the fair values as a range encompassed only reasonable outcomes and were supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external data that it used to develop its independent expectations. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external data that it used to develop its independent expectations. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external data that it used to develop its independent expectations. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer acquired multiple businesses and engaged specialists to determine the fair values of certain acquired assets using various assumptions. For these business combinations, the firm’s approach to substantively test the fair values of certain of these acquired assets consisted of (1) testing the issuer’s process and (2) developing independent expectations of the fair values as a range, and the firm used an auditor-employed specialist in each approach. The following deficiencies were identified:\n· In developing its independent expectations, the firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of certain external data that it used to develop its independent expectations. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of a significant assumption developed by the company’s specialist because the auditor-employed specialist did not perform any procedures to evaluate the reasonableness of a component of this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of a significant assumption developed by the company’s specialist because the auditor-employed specialist did not perform any procedures to evaluate the reasonableness of a component of this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of a significant assumption developed by the company’s specialist because the auditor-employed specialist did not perform any procedures to evaluate the reasonableness of a component of this assumption. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of (1) external data that the company’s specialist used to develop a significant assumption and (2) other external data that the auditor-employed specialist used to evaluate the reasonableness of other significant assumptions. (AS 1105.04, .06, and .A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of (1) external data that the company’s specialist used to develop a significant assumption and (2) other external data that the auditor-employed specialist used to evaluate the reasonableness of other significant assumptions. (AS 1105.04, .06, and .A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of (1) external data that the company’s specialist used to develop a significant assumption and (2) other external data that the auditor-employed specialist used to evaluate the reasonableness of other significant assumptions. (AS 1105.04, .06, and .A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of (1) external data that the company’s specialist used to develop a significant assumption and (2) other external data that the auditor-employed specialist used to evaluate the reasonableness of other significant assumptions. (AS 1105.04, .06, and .A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not evaluate the relevance and reliability of (1) external data that the company’s specialist used to develop a significant assumption and (2) other external data that the auditor-employed specialist used to evaluate the reasonableness of other significant assumptions. (AS 1105.04, .06, and .A8a; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not evaluate the reliability of certain other information that the firm used to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For one of these business combinations, the firm’s approach to substantively test the fair values of certain other acquired intangible assets consisted of testing the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions that the company’s specialists used. The following deficiencies were identified:\n· The firm did not evaluate the reliability of certain other information that the firm used to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement, related to certain acquired assets. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement, related to certain acquired assets. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain issuer-produced information that the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to a description of the nature of certain services the issuer promised to transfer. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to a description of the nature of certain services the issuer promised to transfer. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on data in an electronic environment that were tracked by an IT system. To test this revenue, the firm (1) sent positive confirmation requests to the issuer’s customers with revenue over an established threshold and (2) selected a sample of transactions for testing. The following deficiencies were identified:\n· The firm’s confirmation procedures were not sufficient because the firm did not consider whether the issuer’s customers would have the information necessary to confirm that the issuer’s performance obligations had been satisfied. (AS 2310.26)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on data in an electronic environment that were tracked by an IT system. To test this revenue, the firm (1) sent positive confirmation requests to the issuer’s customers with revenue over an established threshold and (2) selected a sample of transactions for testing. The following deficiencies were identified:\n· The firm did not evaluate whether the transaction prices allocated to the issuer’s performance obligations were based on standalone selling prices. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recorded certain revenue based on data in an electronic environment that were tracked by an IT system. To test this revenue, the firm (1) sent positive confirmation requests to the issuer’s customers with revenue over an established threshold and (2) selected a sample of transactions for testing. The following deficiencies were identified:\n· The firm did not evaluate whether the transaction prices allocated to the issuer’s performance obligations were based on standalone selling prices. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For another type of revenue, the firm did not perform procedures to test whether the issuer’s performance obligation had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For another type of revenue, the firm did not perform procedures to test whether the issuer’s performance obligation had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 606 related to significant payment terms. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 606 related to significant payment terms. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer evaluated its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The firm did not sufficiently evaluate the reliability of management’s plans because it did not (1) evaluate management’s ability to increase revenue and (2) take into account certain conditions and events that could affect revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer evaluated its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The firm did not sufficiently evaluate the reliability of management’s plans because it did not (1) evaluate management’s ability to increase revenue and (2) take into account certain conditions and events that could affect revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer evaluated its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The firm did not sufficiently evaluate the reliability of management’s plans because it did not (1) evaluate management’s ability to increase revenue and (2) take into account certain conditions and events that could affect revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer evaluated its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The firm did not sufficiently evaluate the reliability of management’s plans because it did not (1) evaluate management’s ability to increase revenue and (2) take into account certain conditions and events that could affect revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer evaluated its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The firm did not sufficiently evaluate the reliability of management’s plans because it did not (1) evaluate management’s ability to increase revenue and (2) take into account certain conditions and events that could affect revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment, and the firm selected for testing a control that consisted of the issuer’s review of this assessment. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of a significant assumption used in this assessment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment, and the firm selected for testing a control that consisted of the issuer’s review of this assessment. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of a significant assumption used in this assessment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "25", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not evaluate whether the auditor-employed specialist’s independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s goodwill impairment assessment consisted of developing an independent expectation of the fair value of the issuer’s single reporting unit as a range using an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform procedures to evaluate the relevance of data from external sources it used to develop the independent expectation as a range. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer estimated the cost of certain inventory using various significant assumptions. The firm’s approach for substantively testing the valuation of this inventory was to test the issuer’s process. The following deficiencies were identified:\n· The firm’s approach for evaluating the reasonableness of certain significant assumptions was to develop expectations of these assumptions. The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for its expectations because it limited the development of these expectations to the results of its tests of certain varieties of inventory items. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer estimated the cost of certain inventory using various significant assumptions. The firm’s approach for substantively testing the valuation of this inventory was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to test, or test controls over, the accuracy and/or completeness of certain issuer-produced information that the firm used in its substantive testing of inventory. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain issuer-produced information that it used in its testing of (1) certain revenue and (2) the issuer’s disclosure related to the remaining performance obligations. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Asset", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test intangible assets for possible impairment. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer used an IT system to initiate, process, and record transactions related to certain expenses and long-lived assets. The firm identified various control deficiencies in its testing of ITGCs over this system, but did not sufficiently evaluate whether these deficiencies represented a material weakness because the firm did not evaluate the magnitude of the potential misstatements resulting from these deficiencies. (AS 2201.62)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer used an IT system to initiate, process, and record transactions related to certain expenses and long-lived assets. The firm identified various control deficiencies in its testing of ITGCs over this system, but did not sufficiently evaluate whether these deficiencies represented a material weakness because the firm did not evaluate the magnitude of the potential misstatements resulting from these deficiencies. (AS 2201.62)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer used an IT system to initiate, process, and record transactions related to certain expenses and long-lived assets. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated from this system. As a result of this deficiency in the firm’s evaluation, the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer used an IT system to initiate, process, and record transactions related to certain expenses and long-lived assets. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used data and reports generated from this system. As a result of this deficiency in the firm’s evaluation, the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer included payroll and other costs as components of these expenses, which were affected by the audit deficiencies discussed above. The following additional deficiencies were identified:\n· The firm did not evaluate whether the controls it selected for testing were designed to address the risk of whether the issuer had appropriately classified these payroll and other costs. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe issuer included payroll and other costs as components of these expenses, which were affected by the audit deficiencies discussed above. The following additional deficiencies were identified:\n· The firm did not perform any substantive procedures to test whether the issuer had appropriately classified these payroll costs. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe firm selected for testing a control, which was affected by the audit deficiencies discussed above, that included the issuer’s review of certain long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owner performed to assess certain indicators of possible impairment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe firm selected for testing a control, which was affected by the audit deficiencies discussed above, that included the issuer’s review of certain long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owner performed to assess certain indicators of possible impairment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed the ITGCs area, and also identified the deficiency below.\nThe firm did not perform any substantive procedures to test these long-lived assets for possible impairment. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts with customers that included an estimate of variable consideration in the transaction price; the issuer estimated this variable consideration using a portfolio of contracts approach. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer’s method to estimate variable consideration was in conformity with FASB ASC Topic 606 and appropriate for the nature of the revenue. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts with customers that included an estimate of variable consideration in the transaction price; the issuer estimated this variable consideration using a portfolio of contracts approach. The following deficiencies were identified:\n· The firm used an issuer-prepared schedule of cash receipts by invoice in its substantive testing of the variable consideration estimate. The firm did not sufficiently test, or test controls over, the accuracy of this schedule because it did not perform procedures to evaluate whether the cash receipts throughout the period related to the associated invoices. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm compared the forecasted revenue to the issuer’s results subsequent to year end but did not evaluate the significant difference it identified. Further, the firm did not evaluate whether the issuer’s recent reduction in workforce would affect its ability to achieve its forecasted revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm compared the forecasted revenue to the issuer’s results subsequent to year end but did not evaluate the significant difference it identified. Further, the firm did not evaluate whether the issuer’s recent reduction in workforce would affect its ability to achieve its forecasted revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm compared the forecasted revenue to the issuer’s results subsequent to year end but did not evaluate the significant difference it identified. Further, the firm did not evaluate whether the issuer’s recent reduction in workforce would affect its ability to achieve its forecasted revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm compared the forecasted revenue to the issuer’s results subsequent to year end but did not evaluate the significant difference it identified. Further, the firm did not evaluate whether the issuer’s recent reduction in workforce would affect its ability to achieve its forecasted revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm compared the forecasted revenue to the issuer’s results subsequent to year end but did not evaluate the significant difference it identified. Further, the firm did not evaluate whether the issuer’s recent reduction in workforce would affect its ability to achieve its forecasted revenue growth. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm did not compare certain forecasted expenditures with the issuer’s results subsequent to year end. (AS 1105.04 and .06; AS 2415.09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm did not compare certain forecasted expenditures with the issuer’s results subsequent to year end. (AS 1105.04 and .06; AS 2415.09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the reliability of the issuer’s forecasted financial information, as follows:\n· The firm did not compare certain forecasted expenditures with the issuer’s results subsequent to year end. (AS 1105.04 and .06; AS 2415.09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivatives", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain equity-related agreements; the issuer accounted for each of these agreements as one or more derivatives. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer’s accounting for one of these agreements was in conformity with FASB ASC Topic 815, Derivatives and Hedging. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivatives", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain equity-related agreements; the issuer accounted for each of these agreements as one or more derivatives. The following deficiencies were identified:\n· The firm’s approach to substantively test the fair values of these derivatives at issuance and year end was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used in the valuation of these derivatives at issuance and year end, beyond reading an issuer-prepared memorandum and inquiring of management and, for one of the agreements, a counterparty. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivatives", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain equity-related agreements; the issuer accounted for each of these agreements as one or more derivatives. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820 related to the valuation of these derivatives at issuance and year end. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivatives", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain equity-related agreements; the issuer accounted for each of these agreements as one or more derivatives. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820 related to the valuation of these derivatives at issuance and year end. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the issuer’s compliance with certain financial debt covenants. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate (1) a misstatement in the issuer’s statement of cash flows related to proceeds and repayments of debt; (2) the issuer’s omission of a required disclosure under FASB ASC Topic 210, Balance Sheet, related to the remaining borrowing capacity for certain debt; and (3) misstatements in certain disclosures required under FASB ASC Topic 820 and FASB ASC Topic 825, Financial Instruments, related to the issuer’s accounting for and measurement of certain other debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its presentation of the statement of cash flows and concluded that a misstatement existed that had not been previously identified. The issuer corrected this misstatement in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate (1) a misstatement in the issuer’s statement of cash flows related to proceeds and repayments of debt; (2) the issuer’s omission of a required disclosure under FASB ASC Topic 210, Balance Sheet, related to the remaining borrowing capacity for certain debt; and (3) misstatements in certain disclosures required under FASB ASC Topic 820 and FASB ASC Topic 825, Financial Instruments, related to the issuer’s accounting for and measurement of certain other debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its presentation of the statement of cash flows and concluded that a misstatement existed that had not been previously identified. The issuer corrected this misstatement in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain of its long-lived assets for possible impairment at year end and concluded that the carrying value of these assets was recoverable. The firm did not identify that the issuer did not consider certain indicators of possible impairment in its assessment of these assets. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain of its long-lived assets for possible impairment at year end and concluded that the carrying value of these assets was recoverable. The firm did not identify that the issuer did not consider certain indicators of possible impairment in its assessment of these assets. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used various service organizations for the custody, recordkeeping, and processing of investment transactions, and these service organizations used sub-service organizations for certain functions. For certain sub-service organizations and one service organization, the firm did not obtain an understanding of, or test, any relevant controls for the year under audit. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The issuer used various service organizations for the custody, recordkeeping, and processing of investment transactions, and these service organizations used sub-service organizations for certain functions. For certain sub-service organizations and one service organization, the firm did not obtain an understanding of, or test, any relevant controls for the year under audit. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for certain of these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. The following deficiencies were identified:\n· The firm selected for testing a complementary user control that addressed the issuer’s review of updates to its investment policies, but did not test the design and operating effectiveness of this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for certain of these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. The following deficiencies were identified:\n· The firm selected for testing a complementary user control that addressed the issuer’s review of updates to its investment policies, but did not test the design and operating effectiveness of this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for certain of these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate whether the issuer implemented certain other complementary user controls as described in the service auditor’s reports. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm obtained the service auditor’s reports for certain of these service organizations and identified certain complementary user controls that the service auditor’s reports described as necessary. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate whether the issuer implemented certain other complementary user controls as described in the service auditor’s reports. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "P", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "For one business unit, 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 this business unit. (AS 2401.61)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "P", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to revenue that is recognized over time. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "P", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 606 related to revenue that is recognized over time. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "Q", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time using an input method based on costs incurred. The following deficiencies were identified:\n· The firm did not perform substantive procedures to evaluate whether the costs incurred had been allocated to the appropriate contract. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "Q", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time using an input method based on costs incurred. The following deficiencies were identified:\n· The firm did not perform substantive procedures to evaluate whether the costs incurred had been allocated to the appropriate contract. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "Q", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time using an input method based on costs incurred. The following deficiencies were identified:\n· The firm used certain labor information in its substantive testing of the costs incurred but did not test, or test controls over, the accuracy of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer engaged a specialist to perform a quantitative assessment of goodwill for one reporting unit for possible impairment. The firm used an auditor-employed specialist to evaluate certain significant assumptions used in the issuer’s assessment. For certain of these significant assumptions, the firm did not identify that the auditor-employed specialist did not (1) perform procedures, beyond inquiring of the company’s specialist, to evaluate the reasonableness of these assumptions and (2) evaluate the relevance and/or reliability of certain data from an external source the company’s specialist used to develop these assumptions. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer engaged a specialist to perform a quantitative assessment of goodwill for one reporting unit for possible impairment. The firm used an auditor-employed specialist to evaluate certain significant assumptions used in the issuer’s assessment. For certain of these significant assumptions, the firm did not identify that the auditor-employed specialist did not (1) perform procedures, beyond inquiring of the company’s specialist, to evaluate the reasonableness of these assumptions and (2) evaluate the relevance and/or reliability of certain data from an external source the company’s specialist used to develop these assumptions. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer engaged a specialist to perform a quantitative assessment of goodwill for one reporting unit for possible impairment. The firm used an auditor-employed specialist to evaluate certain significant assumptions used in the issuer’s assessment. For certain of these significant assumptions, the firm did not identify that the auditor-employed specialist did not (1) perform procedures, beyond inquiring of the company’s specialist, to evaluate the reasonableness of these assumptions and (2) evaluate the relevance and/or reliability of certain data from an external source the company’s specialist used to develop these assumptions. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer engaged a specialist to perform a quantitative assessment of goodwill for one reporting unit for possible impairment. The firm used an auditor-employed specialist to evaluate certain significant assumptions used in the issuer’s assessment. For certain of these significant assumptions, the firm did not identify that the auditor-employed specialist did not (1) perform procedures, beyond inquiring of the company’s specialist, to evaluate the reasonableness of these assumptions and (2) evaluate the relevance and/or reliability of certain data from an external source the company’s specialist used to develop these assumptions. (AS 1105.A8a and .A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "At year end, the issuer concluded that it was not necessary to perform an additional quantitative assessment of goodwill for this reporting unit. The firm did not sufficiently evaluate the issuer’s conclusion because it did not evaluate the issuer’s basis for concluding that certain events and circumstances that occurred during the year did not indicate that it was more likely than not that the fair value of this reporting unit was below its carrying amount. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "At year end, the issuer concluded that it was not necessary to perform an additional quantitative assessment of goodwill for this reporting unit. The firm did not sufficiently evaluate the issuer’s conclusion because it did not evaluate the issuer’s basis for concluding that certain events and circumstances that occurred during the year did not indicate that it was more likely than not that the fair value of this reporting unit was below its carrying amount. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "S", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed assessments of certain intangible assets for possible impairment using various significant assumptions. The firm’s approach to evaluate these impairment assessments was to test the issuer’s process. The firm did not perform procedures, beyond inquiring of management, to evaluate the reasonableness of certain significant assumptions used in these impairment assessments. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "T", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported convertible debt that was measured at fair value. The firm did not perform procedures, beyond inquiring of management, to evaluate the reasonableness of a significant assumption used by the issuer to determine the fair value of the convertible debt. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "U", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported warrants that were recorded as liabilities. The firm did not identify and evaluate the issuer’s omission of, and a misstatement in, certain required disclosures under FASB ASC Topic 820 related to these warrants. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "688", "Firm Names": "Marcum LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "25-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "U", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported warrants that were recorded as liabilities. The firm did not identify and evaluate the issuer’s omission of, and a misstatement in, certain required disclosures under FASB ASC Topic 820 related to these warrants. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), because it did not perform any procedures to evaluate whether revenue was recognized as the issuer’s performance obligation was satisfied. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), because it did not perform any procedures to evaluate whether revenue was recognized as the issuer’s performance obligation was satisfied. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm did not perform sufficient procedures to test the transaction price, because it did not evaluate whether the promised consideration included variable consideration. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The sample size the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over the revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The firm did not take into account appropriate factors in determining its sample size, including its established tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The firm did not take into account appropriate factors in determining its sample size, including its established tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm’s substantive procedures to test this revenue included testing a sample of transactions. The firm did not take into account appropriate factors in determining its sample size, including its established tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used an issuer-prepared report in its substantive procedures to test the inventory reserve but did not perform any procedures to test, or test any controls over, the accuracy and completeness of this report. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the valuation of inventory included selecting a sample of inventory items for testing. The firm did not perform any procedures to identify slow-moving inventory for certain inventory items selected for testing. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the valuation of inventory included selecting a sample of inventory items for testing. The firm did not perform any procedures to identify slow-moving inventory for certain inventory items selected for testing. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test whether inventory was stated at the lower of cost or net realizable value included selecting a sample of inventory items for testing. The firm did not perform any procedures to test certain inventory items selected for testing. Further, the firm did not perform procedures to test certain other inventory items selected for testing beyond comparing the reported cost of the inventory item to its selling price reflected in the issuer’s price list. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test whether inventory was stated at the lower of cost or net realizable value included selecting a sample of inventory items for testing. The firm did not perform any procedures to test certain inventory items selected for testing. Further, the firm did not perform procedures to test certain other inventory items selected for testing beyond comparing the reported cost of the inventory item to its selling price reflected in the issuer’s price list. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm selected for testing journal entries and other adjustments meeting certain fraud criteria. The firm did not perform sufficient procedures to test the selected journal entries and other adjustments because it did not examine the underlying support for the entries and adjustments. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified, accounted for, and disclosed its related party relationships and transactions, because the firm did not take into account information gathered during the audit that could indicate that related party relationships or transactions previously undisclosed to the firm might exist. (AS 2410.14, .15, and .16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "15", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified, accounted for, and disclosed its related party relationships and transactions, because the firm did not take into account information gathered during the audit that could indicate that related party relationships or transactions previously undisclosed to the firm might exist. (AS 2410.14, .15, and .16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified, accounted for, and disclosed its related party relationships and transactions, because the firm did not take into account information gathered during the audit that could indicate that related party relationships or transactions previously undisclosed to the firm might exist. (AS 2410.14, .15, and .16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "In addition, the firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test revenue included testing a sample of transactions. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over revenue. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with ASC Topic 606, because it did not perform any procedures to test whether the revenue was recognized when the issuer’s performance obligation was satisfied. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with ASC Topic 606, because it did not perform any procedures to test whether the revenue was recognized when the issuer’s performance obligation was satisfied. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the amounts reflected in certain of the issuer’s revenue disclosures were accurate and complete beyond performing non-substantive analytical procedures. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm selected for testing journal entries and other adjustments meeting certain fraud criteria. The firm did not perform sufficient procedures to test the selected journal entries and other adjustments because it did not examine the underlying support for the entries and adjustments. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer had properly identified, accounted for, and disclosed its related party transactions, because the firm did not evaluate whether there were any transactions with certain related parties. (AS 2410.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the accuracy and completeness of amounts due from related parties, beyond sending confirmation requests to certain related parties and inspecting evidence of partial repayment. (AS 2301.08 and .11; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the accuracy and completeness of amounts due from related parties, beyond sending confirmation requests to certain related parties and inspecting evidence of partial repayment. (AS 2301.08 and .11; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the accuracy and completeness of amounts due from related parties, beyond sending confirmation requests to certain related parties and inspecting evidence of partial repayment. (AS 2301.08 and .11; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3299", "Firm Names": "ARK PRO CPA & CO", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "12-Jun-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test inventory included testing a sample of inventory items. The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as the firm did not identify and test any controls over inventory. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized revenue based on the rates in the contracts with its customers and the amount of time incurred to provide its services that was maintained in one of the issuer’s information-technology (IT) systems. The firm did not perform sufficient procedures to test the accuracy and completeness of the time data because its procedures were limited to comparing the issuer’s data to data from an external source and inspecting the issuer’s reconciliation of the data to data the issuer obtained from its customers, without evaluating the reliability of the data from these external sources. (AS 1105.04, .06, and .10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized revenue based on the rates in the contracts with its customers and the amount of time incurred to provide its services that was maintained in one of the issuer’s information-technology (IT) systems. The firm did not perform sufficient procedures to test the accuracy and completeness of the time data because its procedures were limited to comparing the issuer’s data to data from an external source and inspecting the issuer’s reconciliation of the data to data the issuer obtained from its customers, without evaluating the reliability of the data from these external sources. (AS 1105.04, .06, and .10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue based on the rates in the contracts with its customers and the amount of time incurred to provide its services that was maintained in one of the issuer’s information-technology (IT) systems. The firm did not perform sufficient procedures to test the accuracy and completeness of the time data because its procedures were limited to comparing the issuer’s data to data from an external source and inspecting the issuer’s reconciliation of the data to data the issuer obtained from its customers, without evaluating the reliability of the data from these external sources. (AS 1105.04, .06, and .10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used forecasted cash flows in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The issuer also used forecasted cash flows in its evaluation of certain long-lived assets for possible impairment. The issuer developed both of these forecasted cash flows using various assumptions, including certain employee data. The firm used certain labor hour information in its substantive testing of the employee data for each of these forecasted cash flows but did not perform any procedures to test the accuracy and completeness of this information. (AS 1105.10; AS 2415.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used forecasted cash flows in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The issuer also used forecasted cash flows in its evaluation of certain long-lived assets for possible impairment. The issuer developed both of these forecasted cash flows using various assumptions, including certain employee data. The firm used certain labor hour information in its substantive testing of the employee data for each of these forecasted cash flows but did not perform any procedures to test the accuracy and completeness of this information. (AS 1105.10; AS 2415.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer used forecasted cash flows in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The issuer also used forecasted cash flows in its evaluation of certain long-lived assets for possible impairment. The issuer developed both of these forecasted cash flows using various assumptions, including certain employee data. The firm used certain labor hour information in its substantive testing of the employee data for each of these forecasted cash flows but did not perform any procedures to test the accuracy and completeness of this information. (AS 1105.10; AS 2415.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer used forecasted cash flows in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. The issuer also used forecasted cash flows in its evaluation of certain long-lived assets for possible impairment. The issuer developed both of these forecasted cash flows using various assumptions, including certain employee data. The firm used certain labor hour information in its substantive testing of the employee data for each of these forecasted cash flows but did not perform any procedures to test the accuracy and completeness of this information. (AS 1105.10; AS 2415.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For certain assets that were evaluated for impairment, the issuer determined adjustment factors that were important inputs used in developing this estimate. The following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s review of this estimate, including an assessment of these inputs for reasonableness. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of these inputs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For certain assets that were evaluated for impairment, the issuer determined adjustment factors that were important inputs used in developing this estimate. The following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s review of this estimate, including an assessment of these inputs for reasonableness. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of these inputs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain assets that were evaluated for impairment, the issuer determined adjustment factors that were important inputs used in developing this estimate. The following deficiencies were identified:\n· The firm’s approach for substantively testing the reasonableness of this estimate was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions the issuer used to develop this estimate. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For certain assets that were evaluated for impairment, the issuer determined adjustment factors that were important inputs used in developing this estimate. The following deficiencies were identified:\n· The firm’s approach for substantively testing the reasonableness of this estimate was to test the issuer’s process. The firm did not perform any procedures to evaluate the relevance of certain data that the issuer used to develop the adjustment factors. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For certain assets that were evaluated for impairment, the issuer determined adjustment factors that were important inputs used in developing this estimate. The following deficiencies were identified:\n· The firm’s approach for substantively testing the reasonableness of this estimate was to test the issuer’s process. The firm did not perform any procedures to evaluate the relevance of certain data that the issuer used to develop the adjustment factors. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer purchased certain collateralized loans at a discount and engaged specialists to estimate the fair value of these loans’ underlying collateral that the issuer used to determine whether these discounts were accretable. The firm’s approach for substantively testing the fair value of the underlying collateral was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions the company’s specialists used to develop the collateral values, beyond inquiring of management and reading information prepared by the company’s specialists. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialists as audit evidence, beyond gaining an understanding of the professional qualifications for one of the company’s specialists. (AS 1105.A1-.A10; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included two substantive analytical procedures. The following deficiencies were identified:\n· For both substantive analytical procedures, the firm used certain information obtained from an external source to develop its expectations but did not evaluate the reliability of this information. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included two substantive analytical procedures. The following deficiencies were identified:\n· For one of these substantive analytical procedures, the firm developed its expectation based on certain information obtained from another external source but did not evaluate whether this information was sufficiently reliable for purposes of achieving its audit objectives. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For all but one of the issuer’s asset groups, the firm did not perform any procedures to evaluate certain indicators of potential impairment that existed at year end. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "For all but one of the issuer’s asset groups, the firm did not perform any procedures to evaluate certain indicators of potential impairment that existed at year end. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "For all but one of the issuer’s asset groups, the firm did not perform any procedures to evaluate certain indicators of potential impairment that existed at year end. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For the remaining asset group, the issuer identified events during the year indicating that the carrying value of its long-lived assets for that asset group may not be recoverable and performed an impairment analysis. The firm used an issuer-prepared schedule in its evaluation of the issuer’s assessment of those long-lived assets for possible impairment but did not perform any procedures to test the accuracy of certain information in this schedule. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time based on estimated costs incurred relative to total estimated costs to complete the contract. The firm did not evaluate the reasonableness of the significant standard cost assumption that the issuer used to develop the estimated costs incurred on and the estimated costs to complete the contracts the firm selected for testing. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "At two of the issuer’s locations, the issuer valued certain inventory at standard cost and capitalized certain labor and overhead costs to inventory based on the difference between the actual costs incurred and the costs recorded at standard. The firm did not perform sufficient substantive procedures to test the capitalized variance recorded by the issuer at year end because it did not evaluate whether the amount the issuer used to calculate the capitalized variance represented the actual difference between actual and standard costs. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "At one of these locations, the issuer valued certain inventory using the last-in, first-out (LIFO) method. The firm used certain information provided by the issuer to test the LIFO reserve but did not perform any procedures to test, or test any controls over, the accuracy of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified a control deficiency related to the issuer’s control over the occurrence and cut-off of certain revenue. The firm identified and tested various controls that it believed would mitigate this deficiency but did not identify that these compensating controls either did not address the risk of material misstatement related to whether revenue occurred and was recorded in the appropriate period or did not operate at a level of precision that would prevent or detect a misstatement that could be material. (AS 2201.68)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from certain contracts over time based on costs incurred to date relative to total estimated costs to complete the contract. The firm did not sufficiently test the estimated total costs to complete a certain contract it selected for testing because it did not perform any substantive procedures to evaluate the reasonableness of the remaining number of units the issuer expected to deliver that the issuer used to develop the estimated total costs to complete. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "49", "Firm Names": "RSM US LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded an excess and obsolete (E&O) inventory reserve for certain inventory based on the inventory on hand compared to the sales forecast for this inventory. The firm did not perform any procedures to evaluate the reasonableness of the sales forecast that the issuer used to develop this E&O inventory reserve. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer evaluated certain of its intangible assets for possible impairment using forecasted cash flows that it developed using various assumptions, including when, and at what amounts, the issuer would be able to begin recognizing revenue. The firm did not evaluate, beyond inquiry of management, whether the issuer had a reasonable basis for the significant assumptions the issuer used, including taking into account the issuer’s ability to carry out its planned course of action for certain of these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer evaluated certain of its intangible assets for possible impairment using forecasted cash flows that it developed using various assumptions, including when, and at what amounts, the issuer would be able to begin recognizing revenue. The firm did not evaluate, beyond inquiry of management, whether the issuer had a reasonable basis for the significant assumptions the issuer used, including taking into account the issuer’s ability to carry out its planned course of action for certain of these assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to these intangible assets and determined that certain disclosures were omitted. The issuer corrected these omissions in the amended filing discussed below." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its disclosures related to these intangible assets and determined that certain disclosures were omitted. The issuer corrected these omissions in the amended filing discussed below." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer’s accounting for, and presentation of, convertible debt, including warrants, were in conformity with relevant GAAP because, for certain transactions, its procedures were limited to reading an issuer-prepared memorandum, without evaluating certain terms within the debt and warrant agreements. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer’s accounting for, and presentation of, convertible debt, including warrants, were in conformity with relevant GAAP because, for certain transactions, its procedures were limited to reading an issuer-prepared memorandum, without evaluating certain terms within the debt and warrant agreements. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer’s accounting for, and presentation of, convertible debt, including warrants, were in conformity with relevant GAAP because, for certain transactions, its procedures were limited to reading an issuer-prepared memorandum, without evaluating certain terms within the debt and warrant agreements. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate whether the issuer’s accounting for, and presentation of, convertible debt, including warrants, were in conformity with relevant GAAP because, for certain transactions, its procedures were limited to reading an issuer-prepared memorandum, without evaluating certain terms within the debt and warrant agreements. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm firm did not identify and evaluate that the method the issuer used to allocate fair value between certain warrants and convertible debt was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm firm did not identify and evaluate that the method the issuer used to allocate fair value between certain warrants and convertible debt was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm firm did not identify and evaluate that the method the issuer used to allocate fair value between certain warrants and convertible debt was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer entered into certain transactions related to convertible debt and warrants. The following deficiencies were identified:\n· The firm firm did not identify and evaluate that the method the issuer used to allocate fair value between certain warrants and convertible debt was not in conformity with FASB ASC Topic 470, Debt. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting for these convertible debt and warrant transactions and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reliability of certain interim financial results it used to estimate the fair value of these investments because it did not perform procedures beyond (1) comparing the interim financial results to year-end financial results and (2) confirming, for certain underlying investments, operating results with related parties. Further, for one of these investments the firm did not evaluate certain evidence that indicated lower revenue than it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reliability of certain interim financial results it used to estimate the fair value of these investments because it did not perform procedures beyond (1) comparing the interim financial results to year-end financial results and (2) confirming, for certain underlying investments, operating results with related parties. Further, for one of these investments the firm did not evaluate certain evidence that indicated lower revenue than it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reliability of certain interim financial results it used to estimate the fair value of these investments because it did not perform procedures beyond (1) comparing the interim financial results to year-end financial results and (2) confirming, for certain underlying investments, operating results with related parties. Further, for one of these investments the firm did not evaluate certain evidence that indicated lower revenue than it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· For one of these investments, the firm did not perform sufficient procedures to evaluate the reliability of other data it used to estimate the fair value of the investment because its procedures were limited to recalculation. Further, the firm did not evaluate certain evidence that indicated a higher amount than the data it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· For one of these investments, the firm did not perform sufficient procedures to evaluate the reliability of other data it used to estimate the fair value of the investment because its procedures were limited to recalculation. Further, the firm did not evaluate certain evidence that indicated a higher amount than the data it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· For one of these investments, the firm did not perform sufficient procedures to evaluate the reliability of other data it used to estimate the fair value of the investment because its procedures were limited to recalculation. Further, the firm did not evaluate certain evidence that indicated a higher amount than the data it used to develop its independent expectation. (AS 1105.04 and .06; AS 2810.03)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 235, Notes to Financial Statements, related to another investment. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer held certain investments that were categorized as level 3 within the fair value hierarchy as set forth in FASB ASC Topic 820, Fair Value Measurement. The firm’s approach for substantively testing the fair value of these investments was to develop an independent expectation using certain interim financial results and other data about the underlying investments. The following deficiencies were identified:\n· The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 235, Notes to Financial Statements, related to another investment. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated this disclosure and concluded that misstatements existed that had not been previously identified. The issuer subsequently restated its financial statements to correct these misstatements, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various assumptions, including forecasted revenue, customer attrition rate, and useful lives. Forecasted revenue included revenue for current contracts as well as projected revenue for contract renewals and expansions. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of the forecasted revenue because its procedures were limited to agreeing the total contract value for current contracts to customer contracts, without testing projected revenue for contract renewals or expansions. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various assumptions, including forecasted revenue, customer attrition rate, and useful lives. Forecasted revenue included revenue for current contracts as well as projected revenue for contract renewals and expansions. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of the customer attrition rate because its procedures were limited to consideration of the issuer’s pre-existing relationships with customers and certain qualitative industry factors. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various assumptions, including forecasted revenue, customer attrition rate, and useful lives. Forecasted revenue included revenue for current contracts as well as projected revenue for contract renewals and expansions. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of the useful lives the issuer assigned to these intangible assets because it did not evaluate significant differences between the useful lives assigned to these assets and 1) the cash-flow forecast periods used to determine their fair values and/or 2) the remaining lives of the contracts. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various assumptions, including forecasted revenue, customer attrition rate, and useful lives. Forecasted revenue included revenue for current contracts as well as projected revenue for contract renewals and expansions. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to assist it in determining the fair values of certain acquired intangible assets using various assumptions, including forecasted revenue, customer attrition rate, and useful lives. Forecasted revenue included revenue for current contracts as well as projected revenue for contract renewals and expansions. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required under FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not evaluate the reliability of the information it obtained from the external party and used to select its sample for testing a control over change management for one of these systems. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not evaluate the reliability of the information it obtained from the external party and used to select its sample for testing a control over change management for one of these systems. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not evaluate the reliability of the information it obtained from the external party and used to select its sample for testing a control over change management for one of these systems. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not evaluate the reliability of the information it obtained from the external party and used to select its sample for testing a control over change management for one of these systems. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm selected for testing various controls over revenue but did not test, or test any controls over, the completeness of the system-generated reports that it used to select its samples for testing these controls. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm selected for testing various controls over revenue but did not test, or test any controls over, the completeness of the system-generated reports that it used to select its samples for testing these controls. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm used system-generated reports in its substantive testing of certain revenue transactions but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm used system-generated reports in its substantive testing of certain revenue transactions but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm’s substantive procedures to test contract assets consisted of the preparation and testing of a roll-forward of contract assets from the prior year. The firm did not perform sufficient procedures to test this roll-forward because its procedures were limited to testing additions to contract assets during the year. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm’s substantive procedures to test contract assets consisted of the preparation and testing of a roll-forward of contract assets from the prior year. The firm did not perform sufficient procedures to test this roll-forward because its procedures were limited to testing additions to contract assets during the year. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a disclosure related to the change in the balance of contract assets required under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a disclosure related to the change in the balance of contract assets required under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Contract Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a disclosure related to the change in the balance of contract assets required under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and outsourced certain aspects of the IT function, including change management, to an external party. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a disclosure related to the change in the balance of contract assets required under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used a service organization to initiate and process transactions related to revenue that are then recorded in the issuer’s information-technology (IT) system. In its testing of controls over revenue, the firm tested certain automated and IT-dependent manual controls that used data and reports generated by this service organization. The firm obtained a service auditor’s report and identified complementary user controls that the service auditor’s report described as necessary. As a result of the deficiencies in the firm’s testing of the complementary user controls discussed below, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a complementary user control that consisted of the issuer’s reviews of user access to the service organization’s IT system. The firm did not evaluate the specific review procedures that the control owners performed to determine whether previously granted access continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a complementary user control that consisted of the issuer’s reviews of user access to the service organization’s IT system. The firm did not evaluate the specific review procedures that the control owners performed to determine whether previously granted access continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm selected for testing a complementary user control that consisted of the issuer’s reviews of user access to the service organization’s IT system. The firm did not evaluate the specific review procedures that the control owners performed to determine whether previously granted access continued to be appropriate. (AS 2201.42, .44, and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a complementary user control that consisted of the issuer’s reviews of user access to the service organization’s IT system. The firm did not perform any procedures to evaluate whether the issuer had implemented any complementary user controls related to change management. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "The firm selected for testing a complementary user control that consisted of the issuer’s reviews of user access to the service organization’s IT system. The firm did not perform any procedures to evaluate whether the issuer had implemented any complementary user controls related to change management. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain customer contracts, the firm did not perform any substantive procedures to test whether the performance obligations had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For certain customer contracts, the firm did not perform any substantive procedures to test whether the performance obligations had been satisfied before revenue was recognized. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination. The firm used issuer-prepared schedules in its substantive testing of this transaction but did not perform any procedures to test, or test any controls over, the accuracy of certain of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not evaluate the relevance and reliability of information it obtained from external sources that it used to test certain assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not evaluate the relevance and reliability of information it obtained from external sources that it used to test certain assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded interest payable on certain liabilities. The firm did not evaluate the appropriateness of the interest rate that the issuer used to determine the amount of this liability. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recorded interest payable on certain liabilities. The firm did not evaluate the appropriateness of the interest rate that the issuer used to determine the amount of this liability. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time based on costs incurred to date relative to total estimated costs to complete the contract. The firm did not perform any substantive procedures to test whether costs incurred to date were allocated to the appropriate contract. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time based on costs incurred to date relative to total estimated costs to complete the contract. The firm did not perform any substantive procedures to test whether costs incurred to date were allocated to the appropriate contract. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time based on costs incurred to date relative to total estimated costs to complete the contract. The firm did not perform any substantive procedures to evaluate the reasonableness of a significant assumption that the issuer used to develop the estimated total costs to complete the contracts. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Warrants", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond reading an issuer-prepared memorandum, to evaluate whether the issuer's accounting for warrants as equity was in conformity with FASB ASC Topic 815, Derivatives and Hedging. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer's accounting for redeemable stock as temporary equity was in conformity with FASB ASC Topic 480, Distinguishing Liabilities from Equity. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer's accounting for redeemable stock as temporary equity was in conformity with FASB ASC Topic 480, Distinguishing Liabilities from Equity. (AS 2301.08 and .11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "100", "Firm Names": "WithumSmith+Brown, PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Equity", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer engaged a specialist to assist it in determining the fair value of certain shares of its stock. The firm did not perform any procedures to evaluate the reasonableness of a significant assumption developed by the company’s specialist. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these qualitative factors. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these qualitative factors. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these qualitative factors. The firm did not identify and test any controls over the accuracy and completeness of certain loan information that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The following deficiencies were identified:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process. The firm did not sufficiently evaluate the reasonableness of certain significant assumptions the issuer used to develop the qualitative reserve component of the ACL because its procedures were limited to a year-over-year comparison of these significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the quantitative reserve component of the ACL using a model that was developed by the company’s specialist. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the forecasting assumption developed by the company’s specialist and used in the model. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the quantitative reserve component of the ACL using a model that was developed by the company’s specialist. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the forecasting assumption developed by the company’s specialist and used in the model. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the quantitative reserve component of the ACL using a model that was developed by the company’s specialist. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s reconciliation of certain loan data but did not identify and test any controls over the completeness of certain reports that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the quantitative reserve component of the ACL using a model that was developed by the company’s specialist. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of the forecasting significant assumption that was developed by the company’s specialist and used in the model. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on product volumes delivered to its customers and accounted for certain of these arrangements as operating leases. The following deficiencies were identified:\n· The firm identified a control deficiency related to the issuer’s lack of controls over the accuracy of the volume data. The firm used these volume data in its substantive testing of this revenue but did not perform any procedures to test the accuracy and completeness of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on product volumes delivered to its customers and accounted for certain of these arrangements as operating leases. The following deficiencies were identified:\n· The firm identified a control deficiency related to the issuer’s lack of controls over the accuracy of the volume data. The firm used these volume data in its substantive testing of this revenue but did not perform any procedures to test the accuracy and completeness of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on product volumes delivered to its customers and accounted for certain of these arrangements as operating leases. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether the issuer’s classification of certain arrangements as operating leases was appropriate. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "173", "Firm Names": "Crowe LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on product volumes delivered to its customers and accounted for certain of these arrangements as operating leases. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether the issuer’s classification of certain arrangements as operating leases was appropriate. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "199", "Firm Names": "CBIZ CPAs P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer completed an analysis to evaluate long-lived assets for recoverability, because it identified events and changes in circumstances that indicated that the carrying amount may not be recoverable. The firm did not evaluate, beyond inquiry and reading the issuer’s analysis, how this qualitative analysis supported the recoverability of the assets. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "925", "Firm Names": "Cohen & Company, Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the issuer’s classification of certain expenses. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "925", "Firm Names": "Cohen & Company, Ltd.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the issuer’s classification of certain expenses. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used an information-technology system to calculate and record the cost of its inventory. The firm did not identify and test any controls over the calculation of the cost of inventory. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1060", "Firm Names": "Deloitte & Touche", "Inspection Year": "2024", "Country": "Taiwan", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test the valuation of inventory were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The firm selected for testing various automated controls over this revenue that consisted of the configuration of the information technology (IT) system to automatically perform certain functions based on pre-established parameters, and the firm used a “test of one” approach to test these controls. The firm’s testing of these automated controls using a sample of only one instance of each processing alternative was not sufficient because the firm did not evaluate the system functionality of these controls beyond inquiry of the issuer’s personnel regarding their processing alternatives or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The firm selected for testing an IT dependent manual control over this revenue that consisted of management’s review of the reconciliation of certain revenue transactions between two systems. The firm did not identify and test any controls over the accuracy and completeness of the system-generated information used in the operation of this control. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "To reduce the extent of its substantive procedures for certain revenue, the firm tested and placed reliance on controls. The following deficiencies were identified:\n· The sample sizes the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to deficiencies in the firm’s control testing described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm used reports prepared by a third party to substantively test certain other revenue but did not perform any procedures to evaluate the relevance and reliability of these reports. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm used reports prepared by a third party to substantively test certain other revenue but did not perform any procedures to evaluate the relevance and reliability of these reports. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified a characteristic of potentially fraudulent entries or adjustments for testing, but did not determine whether any journal entries met the characteristic. Instead, the firm limited its testing of journal entries for this specific characteristic to haphazardly selected journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "34", "Description in the Firm's Inspection Report": "The firm did not request the confirmation of accounts receivable or document how it overcame the presumption to perform confirmation procedures. (AS 2310.34 and .35)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "35", "Description in the Firm's Inspection Report": "The firm did not request the confirmation of accounts receivable or document how it overcame the presumption to perform confirmation procedures. (AS 2310.34 and .35)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1181", "Firm Names": "KPMG", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain inventory. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1521", "Firm Names": "EY S.p.A.", "Inspection Year": "2023", "Country": "Italy", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reasonableness of a significant assumption used by the issuer to estimate the amount of revenue to recognize for certain sales agreements beyond inquiry of management. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1755", "Firm Names": "SyCip Gorres Velayo & Co.", "Inspection Year": "2024", "Country": "Philippines", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The principal auditor instructed the firm to test certain controls over long-lived assets that consisted of the issuer’s monthly reconciliation of certain accounts and monthly and quarterly reviews of accrued capital expenditures. The number of items selected for testing did not provide sufficient appropriate audit evidence that the controls were operating effectively because the firm did not test the number of items that it determined necessary. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the relevance and reliability of certain external data it used to test realized gains/losses, beyond documenting the methodology used by the external party to price the digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the relevance and reliability of certain external data it used to test realized gains/losses, beyond documenting the methodology used by the external party to price the digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For the items selected related to the first type of transaction, the firm did not sufficiently test the quantity of digital assets transferred because its procedures were limited to testing the quantity of digital assets received, which were a different type of asset than the assets transferred. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For the items selected related to the first type of transaction, the firm did not sufficiently test the quantity of digital assets transferred because its procedures were limited to testing the quantity of digital assets received, which were a different type of asset than the assets transferred. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For certain items selected related to the second type of transaction, the firm did not evaluate the appropriateness of the issuer’s recognition of realized gains/losses. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For certain items selected related to the second type of transaction, the firm did not evaluate the appropriateness of the issuer’s recognition of realized gains/losses. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For certain items selected related to the second type of transaction, the firm did not evaluate the reliability of certain external data used as audit evidence in testing certain of these transactions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· For certain items selected related to the second type of transaction, the firm did not evaluate the reliability of certain external data used as audit evidence in testing certain of these transactions. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not perform any procedures to test the remaining population of realized gains/losses on the sale of digital assets. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not perform any procedures to test the remaining population of realized gains/losses on the sale of digital assets. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not identify and evaluate departures from the applicable accounting standards related to the presentation and disclosure of digital asset transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer recognized realized gains/losses on the sale of digital assets through two different types of transactions. The firm’s substantive procedures to test these realized gains/losses included testing a sample of transactions for each transaction type. The following deficiencies were identified:\n· The firm did not identify and evaluate departures from the applicable accounting standards related to the presentation and disclosure of digital asset transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to test the impairment of certain long-lived assets. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· For certain other long-lived assets, the firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the impairment calculations. Specifically, it did not evaluate significant differences between the assumptions and (i) similar significant assumptions used by the issuer in another estimate, (ii) industry information, and/or (iii) information from an external source. Further, the firm did not perform procedures to evaluate the relevance and/or reliability of the industry information and information from the external source. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· For certain other long-lived assets, the firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the impairment calculations. Specifically, it did not evaluate significant differences between the assumptions and (i) similar significant assumptions used by the issuer in another estimate, (ii) industry information, and/or (iii) information from an external source. Further, the firm did not perform procedures to evaluate the relevance and/or reliability of the industry information and information from the external source. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· For certain other long-lived assets, the firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used in the impairment calculations. Specifically, it did not evaluate significant differences between the assumptions and (i) similar significant assumptions used by the issuer in another estimate, (ii) industry information, and/or (iii) information from an external source. Further, the firm did not perform procedures to evaluate the relevance and/or reliability of the industry information and information from the external source. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to test another portion of an impairment, including whether it was appropriate to record the impairment. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to test another portion of an impairment, including whether it was appropriate to record the impairment. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the relevance and reliability of certain information from external sources that the issuer used in an impairment calculation. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the relevance and reliability of certain information from external sources that the issuer used in an impairment calculation. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The issuer engaged an external specialist to estimate the impairment for certain other long-lived assets. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The issuer engaged an external specialist to estimate the impairment for certain other long-lived assets. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions used by the company’s specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer recorded impairments related to certain long-lived assets during the year. The following deficiencies were identified:\n· The issuer engaged an external specialist to estimate the impairment for certain other long-lived assets. The firm did not perform any procedures to (i) test the accuracy and completeness of issuer-produced information, and (ii) evaluate the relevance and reliability of information from external sources, that were both used by the company’s specialist. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate the useful lives for certain long-lived assets, because it did not evaluate the significant differences between this assumption, the significant assumption used by the issuer in an impairment calculation, and industry information. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or identify and test any controls over, the accuracy of certain data included in certain system-generated reports that it used in its substantive procedures over depreciation expense. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency mining. The firm did not perform any procedures to evaluate (1) the terms and conditions of the issuer’s arrangements with its mining pool operators and (2) the method used by the mining pool operators to allocate consideration to the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency mining. The firm did not perform any procedures to evaluate (1) the terms and conditions of the issuer’s arrangements with its mining pool operators and (2) the method used by the mining pool operators to allocate consideration to the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the relevance and/or reliability of certain external data it used to substantively test this revenue, beyond documenting the methodology used by one source to price crypto assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the relevance and/or reliability of certain external data it used to substantively test this revenue, beyond documenting the methodology used by one source to price crypto assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature, timing, and extent of its substantive procedures to test this significant account. The following deficiencies were identified:\n· The firm selected for testing controls over the review of certain aspects of this significant account. The firm did not perform procedures to evaluate the specific review procedures that the control owners performed to (i) evaluate the reasonableness of the assumptions, (ii) evaluate whether data was appropriately used in determining the estimate, and (iii) test the accuracy and completeness of certain information used in the performance of these controls. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature, timing, and extent of its substantive procedures to test this significant account. The following deficiencies were identified:\n· The firm selected for testing controls over the review of certain aspects of this significant account. The firm did not perform procedures to evaluate the specific review procedures that the control owners performed to (i) evaluate the reasonableness of the assumptions, (ii) evaluate whether data was appropriately used in determining the estimate, and (iii) test the accuracy and completeness of certain information used in the performance of these controls. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature, timing, and extent of its substantive procedures to test this significant account. The following deficiencies were identified:\n· The firm selected for testing certain other controls over this significant account. The firm did not perform sufficient procedures to test the design and operating effectiveness of these controls because it did not obtain evidence that these controls were designed effectively and operating effectively during the entire period of reliance. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on estimates. The firm identified and tested controls to reduce the nature, timing, and extent of its substantive procedures to test this significant account. The following deficiencies were identified:\n· The firm did not perform substantive procedures to test this significant account, beyond performing a retrospective analytical review, testing certain data used to determine the estimate, and comparing activity reports for this significant account to the general ledger. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer reported goodwill and intangible assets. The firm did not perform procedures, beyond (i) obtaining and reading the issuer’s analyses and/or press releases, (ii) performing sensitivity analyses, and (iii) performing certain tests of mathematical accuracy, to test certain of the issuer’s impairment analyses, including consideration of contrary evidence in the work papers for one of the analyses. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer reported goodwill and intangible assets. The firm did not perform procedures, beyond (i) obtaining and reading the issuer’s analyses and/or press releases, (ii) performing sensitivity analyses, and (iii) performing certain tests of mathematical accuracy, to test certain of the issuer’s impairment analyses, including consideration of contrary evidence in the work papers for one of the analyses. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified certain fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate the terms and conditions in the issuer’s contracts for certain types of revenue to determine their effect on the recognition of this revenue, because it limited its procedures to evaluating the terms and conditions of one contract for certain of these types of revenue. (AS 2301.08, .11, and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate the terms and conditions in the issuer’s contracts for certain types of revenue to determine their effect on the recognition of this revenue, because it limited its procedures to evaluating the terms and conditions of one contract for certain of these types of revenue. (AS 2301.08, .11, and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to test the presentation of certain types of revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether certain other revenue was recognized in conformity with the applicable accounting standard, beyond reading the issuer’s revenue recognition policy. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the relevance and reliability of certain information it obtained from external sources and used in its substantive procedures. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the relevance and reliability of certain information it obtained from external sources and used in its substantive procedures. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2814", "Firm Names": "PKF Littlejohn LLP", "Inspection Year": "2023", "Country": "United Kingdom", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified certain fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not examine the underlying support for the journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used two information-technology (IT) systems to initiate, process, and/or record transactions related to certain revenue recognized at various locations. In its testing of controls over this revenue, the firm tested two IT-dependent manual controls that used data and reports generated or maintained by these IT systems. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs). The firm, however, did not test the operating effectiveness of the ITGCs over these IT systems. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used two information-technology (IT) systems to initiate, process, and/or record transactions related to certain revenue recognized at various locations. In its testing of controls over this revenue, the firm tested two IT-dependent manual controls that used data and reports generated or maintained by these IT systems. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs). As a result of the deficiency in the firm’s testing of ITGCs, the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing controls over the revenue. The firm selected for testing certain controls over the processing and recording of the revenue that consisted of the issuer’s review and/or approval of (1) the detail sales price list, (2) sales price and other information in contracts, (3) certain sales reports, and (4) changes in estimated contract costs. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test the operating effectiveness of these controls because the firm did not test the operating effectiveness of the controls at certain “in-scope” locations, which reported a significant amount of the revenue. (AS 2201.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing controls over the revenue. The firm selected for testing certain controls over the processing and recording of the revenue that consisted of the issuer’s review and/or approval of (1) the detail sales price list, (2) sales price and other information in contracts, (3) certain sales reports, and (4) changes in estimated contract costs. The following deficiencies were identified:\n· The firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of the lists from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing controls over the revenue. The firm selected for testing certain controls over the processing and recording of the revenue that consisted of the issuer’s review and/or approval of (1) the detail sales price list, (2) sales price and other information in contracts, (3) certain sales reports, and (4) changes in estimated contract costs. The following deficiencies were identified:\n· For two of these controls, both of which involved the issuer’s review of estimated revenue and contract costs, the firm did not evaluate the specific review procedures that the control owners performed to assess the appropriateness of these estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing controls over the revenue. The firm selected for testing certain controls over the processing and recording of the revenue that consisted of the issuer’s review and/or approval of (1) the detail sales price list, (2) sales price and other information in contracts, (3) certain sales reports, and (4) changes in estimated contract costs. The following deficiencies were identified:\n· For two of these controls, both of which involved the issuer’s review of estimated revenue and contract costs, the firm did not evaluate the specific review procedures that the control owners performed to assess the appropriateness of these estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiencies were identified:\n· The firm selected for testing a control over the processing and recording of this other revenue that consisted of the issuer’s review and approval of the revenue distribution. The firm did not identify and test any controls over the accuracy and completeness of a report used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiencies were identified:\n· The firm used issuer-prepared reports to substantively test this other revenue but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer identified events indicating that the carrying value of its long-lived assets may not be recoverable and performed an impairment analysis for each project. The firm’s approach for testing the impairment of long-lived assets was to test the issuer’s process, and the firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing long-lived assets for possible impairment. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s evaluation of long-lived assets for possible impairment. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer identified events indicating that the carrying value of its long-lived assets may not be recoverable and performed an impairment analysis for each project. The firm’s approach for testing the impairment of long-lived assets was to test the issuer’s process, and the firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing long-lived assets for possible impairment. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test the impairment of long-lived assets because the firm did not test such assets for possible impairment at certain “in-scope” locations, which held a significant portion of the issuer’s long-lived assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer identified events indicating that the carrying value of its long-lived assets may not be recoverable and performed an impairment analysis for each project. The firm’s approach for testing the impairment of long-lived assets was to test the issuer’s process, and the firm identified certain of the issuer’s locations as “in-scope” locations for purposes of testing long-lived assets for possible impairment. The following deficiencies were identified:\n· The firm used an issuer-prepared report to substantively test long-lived assets for possible impairment but did not perform any procedures to test, or test any controls over, the accuracy and completeness of this report. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The firm used issuer-prepared reports to substantively test revenue but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the appropriateness of the issuer’s (1) determination of transaction price and (2) allocation of the transaction price to each performance obligation, because the firm did not evaluate the effect of a sales discount on the transaction price and did not test the SSPs used to allocate revenue to the separate performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the appropriateness of the issuer’s (1) determination of transaction price and (2) allocation of the transaction price to each performance obligation, because the firm did not evaluate the effect of a sales discount on the transaction price and did not test the SSPs used to allocate revenue to the separate performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The issuer recognized certain revenue based on electronic activity. The firm used activity information produced by the issuer to evaluate whether the issuer satisfied its performance obligations related to this revenue but did not perform any procedures to test, or test any controls over, the accuracy and completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The issuer recognized certain other revenue over the performance period. The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations because the firm did not evaluate the reasonableness of the performance period. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative standalone selling prices (SSPs). The firm selected a sample of transactions to test revenue. The following deficiencies were identified:\n· The issuer recognized certain other revenue over the performance period. The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations because the firm did not evaluate the reasonableness of the performance period. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "Payments collected by the issuer were applied to the oldest outstanding accounts receivable balance first. The firm used a system-generated accounts receivable aging report to substantively test the allowance for doubtful accounts but did not perform procedures to test, or test any controls over, the accuracy of the report beyond agreeing a sample of balances from the accounts receivable aging report to the respective billings. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and their subsidiaries and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The firm did not perform sufficient procedures to test the issuer’s ability to consolidate the VIEs because it did not perform any procedures to evaluate the nature of certain uncertainties disclosed by the issuer regarding (1) the validity of the contractual arrangements with the VIEs and their subsidiaries, (2) the structure of the VIEs, and (3) its ability to enforce the contractual arrangements, and perform additional procedures to address the risks associated with those uncertainties. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and 31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative SSPs. The firm’s approach for testing the allocation of revenue to the separate performance obligations was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether the residual method that the issuer used to allocate the transaction price to the separate performance obligations was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers because the firm did not evaluate whether the SSPs of certain performance obligations were highly variable. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts that included multiple performance obligations and allocated the total transaction price to the separate performance obligations based on relative SSPs. The firm’s approach for testing the allocation of revenue to the separate performance obligations was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether the issuer had a reasonable basis for the SSP of a performance obligation for certain transactions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6783", "Firm Names": "Assentsure PAC", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "22-May-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer derives revenue through a consolidated Variable Interest Entity (VIE) and its subsidiaries and relies on contractual arrangements with the VIE and its shareholders to control the business operations of the consolidated VIE. The firm did not perform sufficient procedures to test the issuer’s ability to consolidate the VIE because it did not perform any procedures to evaluate the nature of certain uncertainties disclosed by the issuer regarding (1) the validity of the contractual arrangements with the VIE and its subsidiaries, (2) the structure of the VIE, and (3) its ability to enforce the contractual arrangements, and perform additional procedures to address the risks associated with those uncertainties. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The firm did not identify and test controls over the accuracy and completeness of system reports that the issuer used in the operation of its controls that the firm selected for testing. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The firm did not identify and test controls over the accuracy and completeness of system reports that the issuer used in the operation of its controls that the firm selected for testing. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm’s approach to testing certain revenue included reliance on controls. The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of control reliance that was not supported due to the deficiency described above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "41", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not perform any procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "41", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not perform any procedures to examine a material adjustment the issuer made to revenue during the course of preparing the financial statements. (AS 2301.41)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not perform any procedures to test, or identify and test controls over, as discussed above, the accuracy and completeness of a report used by the firm to test certain deferred revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not perform any procedures to test, or identify and test controls over, as discussed above, the accuracy and completeness of a report used by the firm to test certain deferred revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm selected a sample of invoices to test accounts receivable. The firm did not perform sufficient procedures to test certain invoices because the firm limited its procedures to reviewing the invoice and inquiry of management. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not perform any procedures to test, or identify and test controls over, the accuracy and completeness of certain reports it used to test the allowance for doubtful accounts. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not test the existence, completeness, accuracy, and fair value of the tangible assets acquired and liabilities assumed as of the acquisition date. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not test the existence, completeness, accuracy, and fair value of the tangible assets acquired and liabilities assumed as of the acquisition date. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not perform procedures to test the fair value of the intangible assets and certain of the paid consideration, beyond obtaining the draft report from the company’s specialist. Further, the firm did not perform procedures with respect to its use of the work of the company’s specialist as audit evidence, beyond testing certain terms related to the paid consideration and performing certain recalculations. (AS 1105.A1 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure related to this business combination required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nDuring the year, the issuer acquired a business and engaged an external specialist to assist in determining the fair value of the consideration and intangible assets. The following deficiency was identified: \n· The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure related to this business combination required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed certain of these areas and identified the deficiencies below in the related areas reviewed.\nThe firm did not consider fraud characteristics in identifying and selecting journal entries and other adjustments for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm did not identify and evaluate a departure from GAAP related to the issuer’s valuation of the acquiree’s investment in the acquirer. (AS 2810.30)\nUnrelated to our review, the issuer reevaluated its accounting for this acquisition 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure related to this business combination required by FASB ASC Topic 805. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of a disclosure related to this business combination required by FASB ASC Topic 805. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "76", "Firm Names": "Turner, Stone & Company, L.L.P.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer performed a qualitative assessment of impairment of an investment and concluded that it was not impaired. The firm did not perform procedures, beyond inquiry, to test the accuracy of certain issuer-produced information included in the assessment to support the issuer’s conclusion. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "273", "Firm Names": "Prager Metis CPAs, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer’s conclusion that there were no indicators of potential impairment related to its intangible assets even though the firm was aware that such conditions existed. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "273", "Firm Names": "Prager Metis CPAs, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer’s conclusion that there were no indicators of potential impairment related to its intangible assets even though the firm was aware that such conditions existed. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "273", "Firm Names": "Prager Metis CPAs, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries, because it limited its procedures to certain entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included testing a sample of transactions. The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including the relationship of the samples to the relevant audit objective and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included testing a sample of transactions. The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including the relationship of the samples to the relevant audit objective and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included testing a sample of transactions. The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including the relationship of the samples to the relevant audit objective and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included testing a sample of transactions. The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including the relationship of the samples to the relevant audit objective and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests via email to a sample of customers as part of its substantive \ntesting of accounts receivable, and the email address for each customer was provided by the issuer. The \nfirm received the responses for all but one of the confirmation requests sent via email. The firm did not \nconsider performing procedures to address the risks associated with electronic responses, such as \nverifying the source of the confirmation responses. (AS 2310.29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm selected for testing certain controls over the reserve estimates that consisted of the issuer’s (1) review of changes to the expected future production volumes (“production profile”), (2) review of key assumptions within the remaining expected production profile estimates, (3) assessment of deviations between the expected reserve estimates the company’s employed specialists developed and the expected reserve estimates the company’s engaged specialist developed, (4) review of changes in proved developed and undeveloped reserves, (5) review of the proved reserve estimates volumetric inputs in the standardized measure of value, and (6) review of the final proved reserve estimates. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data the issuer produced and/or the evaluation of the relevance and reliability of certain non-financial data from external sources that was (1) used in developing the reserves production profiles and/or standardized measure of value, (2) used in the operation of certain of the above controls, and (3) provided to the company’s engaged specialist to evaluate the issuer’s reserve estimates. (AS 2201.39) \n· The firm did not identify and test any controls over the reasonableness of the methods and assumptions the company’s employed specialists used to develop the reserve estimates. (AS 2201.39) \n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the accuracy and completeness of the underlying non-financial data used in developing the reserves production profiles and/or standardized measure of value used in the operation of certain of the above controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm selected for testing certain controls over the reserve estimates that consisted of the issuer’s (1) review of changes to the expected future production volumes (“production profile”), (2) review of key assumptions within the remaining expected production profile estimates, (3) assessment of deviations between the expected reserve estimates the company’s employed specialists developed and the expected reserve estimates the company’s engaged specialist developed, (4) review of changes in proved developed and undeveloped reserves, (5) review of the proved reserve estimates volumetric inputs in the standardized measure of value, and (6) review of the final proved reserve estimates. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data the issuer produced and/or the evaluation of the relevance and reliability of certain non-financial data from external sources that was (1) used in developing the reserves production profiles and/or standardized measure of value, (2) used in the operation of certain of the above controls, and (3) provided to the company’s engaged specialist to evaluate the issuer’s reserve estimates. (AS 2201.39) \n· The firm did not identify and test any controls over the reasonableness of the methods and assumptions the company’s employed specialists used to develop the reserve estimates. (AS 2201.39) \n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the accuracy and completeness of the underlying non-financial data used in developing the reserves production profiles and/or standardized measure of value used in the operation of certain of the above controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm selected for testing certain controls over the reserve estimates that consisted of the issuer’s (1) review of changes to the expected future production volumes (“production profile”), (2) review of key assumptions within the remaining expected production profile estimates, (3) assessment of deviations between the expected reserve estimates the company’s employed specialists developed and the expected reserve estimates the company’s engaged specialist developed, (4) review of changes in proved developed and undeveloped reserves, (5) review of the proved reserve estimates volumetric inputs in the standardized measure of value, and (6) review of the final proved reserve estimates. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data the issuer produced and/or the evaluation of the relevance and reliability of certain non-financial data from external sources that was (1) used in developing the reserves production profiles and/or standardized measure of value, (2) used in the operation of certain of the above controls, and (3) provided to the company’s engaged specialist to evaluate the issuer’s reserve estimates. (AS 2201.39) \n· The firm did not identify and test any controls over the reasonableness of the methods and assumptions the company’s employed specialists used to develop the reserve estimates. (AS 2201.39) \n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the accuracy and completeness of the underlying non-financial data used in developing the reserves production profiles and/or standardized measure of value used in the operation of certain of the above controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm selected for testing certain controls over the reserve estimates that consisted of the issuer’s (1) review of changes to the expected future production volumes (“production profile”), (2) review of key assumptions within the remaining expected production profile estimates, (3) assessment of deviations between the expected reserve estimates the company’s employed specialists developed and the expected reserve estimates the company’s engaged specialist developed, (4) review of changes in proved developed and undeveloped reserves, (5) review of the proved reserve estimates volumetric inputs in the standardized measure of value, and (6) review of the final proved reserve estimates. The following deficiency was identified: \n· The firm did not identify and test any controls over the accuracy and completeness of certain non-financial data the issuer produced and/or the evaluation of the relevance and reliability of certain non-financial data from external sources that was (1) used in developing the reserves production profiles and/or standardized measure of value, (2) used in the operation of certain of the above controls, and (3) provided to the company’s engaged specialist to evaluate the issuer’s reserve estimates. (AS 2201.39) \n· The firm did not identify and test any controls over the reasonableness of the methods and assumptions the company’s employed specialists used to develop the reserve estimates. (AS 2201.39) \n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the accuracy and completeness of the underlying non-financial data used in developing the reserves production profiles and/or standardized measure of value used in the operation of certain of the above controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: \n· Perform procedures to test, or test any controls over, the accuracy and completeness of certain non-financial data the issuer prepared and the company’s employed specialists used to develop the reserve estimates; (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: \n· Evaluate the relevance and reliability of external non-financial data the company’s employed specialists used to develop the reserve estimates; (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: \n· Evaluate the reasonableness of the significant assumptions developed by the issuer and the company’s employed specialists that were used by the company’s employed specialists to develop the reserve estimates; (AS 1105.A8b; AS 2501.16) and" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: \n· Evaluate the reasonableness of the significant assumptions developed by the issuer and the company’s employed specialists that were used by the company’s employed specialists to develop the reserve estimates; (AS 1105.A8b; AS 2501.16) and" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed the Long-Lived Assets area but did not identify certain of the deficiencies below related to this area.\nThe issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its proved and expected oil and gas reserves (“reserve estimates”). Proved reserves were used in the calculation of depreciation, depletion, and amortization of production plants and oil and gas assets, and expected reserve estimates were used in the impairment analyses of production plants and oil and gas assets including assets under development. The issuer also engaged an external specialist (company’s engaged specialist) to evaluate its proved reserve estimates. \nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not: \n· Evaluate whether the methods the company’s employed specialists used to develop the reserve estimates were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nAmong other procedures, the principal auditor instructed the firm to (1) compare the contract terms of receivables acquired during the year to the contract summary to ensure that it provided a complete and accurate reflection of the contract details and (2) test the accuracy of key customer data in the component’s customer collections system. The firm did not perform these substantive procedures, as instructed by the principal auditor. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm selected for testing certain controls over deposit liabilities that consisted of the issuer’s reconciliation and review of deposit payment requests. The firm did not evaluate the specific review procedures that the control owners performed to ensure that deposits were not refunded incorrectly or fraudulently in the approval of withdrawal requests and to ensure the accuracy of the interest-bearing deposits account reconciliations. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm selected for testing certain controls over deposit liabilities that consisted of the issuer’s reconciliation and review of deposit payment requests. The firm did not evaluate the specific review procedures that the control owners performed to ensure that deposits were not refunded incorrectly or fraudulently in the approval of withdrawal requests and to ensure the accuracy of the interest-bearing deposits account reconciliations. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The firm did not perform any substantive procedures to test withdrawal activity during the year. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "45", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The firm did not perform any procedures to extend its conclusions regarding the existence and completeness of deposit liabilities from the interim date in which the audit procedures were performed to year-end. (AS 2301.45)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The firm did not perform procedures to test, or test any controls over, the completeness of the report from which it selected its samples for testing, beyond reviewing the parameters used to generate the report. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The firm did not examine the support for customer statements and proof of deposits in the accounting system, as it had communicated to the principal auditor. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1572", "Firm Names": "Ernst & Young AS", "Inspection Year": "2023", "Country": "Norway", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm’s substantive procedures to test the existence and completeness of deposit liabilities included sending positive confirmation requests to a sample of customers to confirm the deposits that they made through an interim date. The firm communicated to the principal auditor that it had also examined support for customer account statements and proof of deposits in the accounting system. The following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test deposit liabilities was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs) over certain of these IT systems, the firm’s testing of these automated and IT-dependent controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? The firm selected for testing certain controls over change management and user access but did not perform procedures to test, or test any controls over, the completeness of the population of items from which it made its selections for testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? The firm selected for testing a control that consisted of the issuer’s periodic review of user access to one of its IT systems. The firm, however, did not perform procedures to test the design and operating effectiveness of this control. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? The firm selected for testing a control that consisted of the issuer’s periodic review of user access to one of its IT systems. The firm, however, did not perform procedures to test the design and operating effectiveness of this control. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? The firm selected for testing a control over the authorization and restriction of privileged access to one of its systems. The firm did not perform sufficient procedures to test this control because it limited its procedures to testing that one type of privileged access was restricted at a point in time during the year. (AS 2301.16 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? The firm selected for testing a control over the authorization and restriction of privileged access to one of its systems. The firm did not perform sufficient procedures to test this control because it limited its procedures to testing that one type of privileged access was restricted at a point in time during the year. (AS 2301.16 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "34", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record inventory and inventory-related transactions. The firm relied on controls it selected for testing in its approach to testing inventory. In its testing of controls over inventory, the firm tested various automated and IT\u0002dependent manual controls that used data and reports generated or maintained by these IT systems. \n? For one of its IT systems, the firm identified control deficiencies related to (1) developers having inappropriate access to the production environment and (2) the lack of monitoring of user activity. The firm did not evaluate the severity of these deficiencies and the effect on its control risk assessments. (AS 2301.34)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer’s review of the costs at which inventory is recorded. For these controls, the firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer’s review of the costs at which inventory is recorded. For these controls, the firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2301.19 and .21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test inventory costs were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For certain inventory, the firm did not perform any procedures to test, or as discussed above, sufficiently test controls over, the accuracy and completeness of an inventory aging report generated from the one of the issuer’s IT systems it used to test the issuer’s obsolete inventory reserve. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Possible Illegal Acts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm became aware, through discussions with the issuer’s audit committee and a review of whistleblower program records, of two incidents involving the improper authorization of lease agreements by a manager acting on behalf of the issuer. The firm did not take sufficient action in response to these possible illegal acts because (1) it limited its procedures to inquiry and reading the issuer’s whistleblower reporting summary and (2) it did not evaluate the effect on the financial statements as well as consider the implications for other aspects of the audit. (AS 2405.10 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Possible Illegal Acts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm became aware, through discussions with the issuer’s audit committee and a review of whistleblower program records, of two incidents involving the improper authorization of lease agreements by a manager acting on behalf of the issuer. The firm did not take sufficient action in response to these possible illegal acts because (1) it limited its procedures to inquiry and reading the issuer’s whistleblower reporting summary and (2) it did not evaluate the effect on the financial statements as well as consider the implications for other aspects of the audit. (AS 2405.10 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1818", "Firm Names": "BDO China Shu Lun Pan Certified Public Accountants LLP", "Inspection Year": "2024", "Country": "China", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Possible Illegal Acts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B8", "Description in the Firm's Inspection Report": "The firm became aware, through discussions with the issuer’s audit committee and a review of whistleblower program records, of two incidents involving the improper authorization of lease agreements by a manager acting on behalf of the issuer. The firm did not evaluate the effect of these possible illegal acts on the effectiveness of the issuer’s internal control over financial reporting. (AS 2201.B8)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2256", "Firm Names": "BDO Audit Pty Ltd", "Inspection Year": "2024", "Country": "Australia", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s selected a sample of transactions to test certain revenue. The firm did not perform any procedures to test whether certain of these transactions were appropriately recognized as revenue. Further, for certain other transactions, the firm did not perform sufficient procedures to test the related revenue because it limited its procedures to vouching to cash receipts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2256", "Firm Names": "BDO Audit Pty Ltd", "Inspection Year": "2024", "Country": "Australia", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s selected a sample of transactions to test certain revenue. The firm did not perform any procedures to test whether certain of these transactions were appropriately recognized as revenue. Further, for certain other transactions, the firm did not perform sufficient procedures to test the related revenue because it limited its procedures to vouching to cash receipts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2256", "Firm Names": "BDO Audit Pty Ltd", "Inspection Year": "2024", "Country": "Australia", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimate", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing a significant estimate was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of a significant assumption used by the issuer to develop this estimate, beyond testing the mathematical accuracy of the calculation. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2256", "Firm Names": "BDO Audit Pty Ltd", "Inspection Year": "2024", "Country": "Australia", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test, or identify and test any controls over, the completeness of certain issuer-prepared information used in its substantive testing of revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2256", "Firm Names": "BDO Audit Pty Ltd", "Inspection Year": "2024", "Country": "Australia", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer performed inventory counts prior to year end. The firm obtained issuer-prepared roll-forward analyses, but did not perform procedures to test the completeness of the intervening transactions. (AS 2510.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform a test of details to address an identified fraud risk related to certain revenue; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform a test of details to address an identified fraud risk related to certain revenue; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether a certain contract was with a customer, and whether the issuer had identified all of the performance obligations; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate whether a certain contract was with a customer, and whether the issuer had identified all of the performance obligations; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the counterparty for one contract was a customer or acting as an agent for the issuer; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the counterparty for one contract was a customer or acting as an agent for the issuer; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not evaluate whether certain contracts constituted transactions with related parties requiring disclosure within the financial statements; (AS 2410.14 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not evaluate whether certain contracts constituted transactions with related parties requiring disclosure within the financial statements; (AS 2410.14 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the allocation of the transaction price to the separate performance obligations for a certain contract; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the allocation of the transaction price to the separate performance obligations for a certain contract; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate for a certain type of revenue whether it was probable that the issuer would collect substantially all of the consideration to which the issuer was entitled in exchange for the satisfaction of its performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not evaluate for a certain type of revenue whether it was probable that the issuer would collect substantially all of the consideration to which the issuer was entitled in exchange for the satisfaction of its performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed disaggregated revenue by source. The firm did not test the accuracy and completeness of the disclosure, including addressing a difference between the amounts disclosed and the amounts per the firm’s work papers. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer disclosed disaggregated revenue by source. The firm did not test the accuracy and completeness of the disclosure, including addressing a difference between the amounts disclosed and the amounts per the firm’s work papers. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer disclosed disaggregated revenue by source. The firm did not test the accuracy and completeness of the disclosure, including addressing a difference between the amounts disclosed and the amounts per the firm’s work papers. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to the issuer’s customers for a sample of accounts receivable. For confirmations returned with exceptions and for those for which differences were identified through alternative procedures, the firm did not sufficiently evaluate the nature of those exceptions, as it limited its procedures to inquiry. (AS 2310.33)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: \n· The firm did not sufficiently evaluate whether methods the company’s specialist used to determine the fair value of these assets were appropriate because the firm did not evaluate whether the data and significant assumptions were appropriately applied under the applicable financial reporting framework. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: \n· The firm did not evaluate the reasonableness of certain significant assumptions developed by the issuer and the company’s specialist that were used by the company’s specialist to determine the fair value of these assets. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: \n· The firm did not evaluate the reasonableness of certain significant assumptions developed by the issuer and the company’s specialist that were used by the company’s specialist to determine the fair value of these assets. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: \n· The firm developed an expectation of certain other significant assumptions, developed by the issuer and used by the company’s specialist, to evaluate their reasonableness. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not (i) perform procedures to demonstrate that it had a reasonable basis for a component of the assumptions and (ii) did not evaluate the significant differences between its expectations and the assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of certain assets. The following deficiency was identified: \n· The firm did not sufficiently evaluate the reasonableness of another significant assumption used by the company’s specialist because it limited its procedures to a comparison to a similar assumption used by the issuer in the prior year. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not sufficiently test the existence and fair value of certain assets because it limited its testing to determining that certain subsequent payments were received. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not sufficiently test the existence and fair value of certain assets because it limited its testing to determining that certain subsequent payments were received. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not sufficiently test the existence and fair value of certain assets because it limited its testing to determining that certain subsequent payments were received. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to test the existence and fair value of certain other assets. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to test the existence and fair value of certain other assets. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to test the existence and fair value of certain other assets. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to evaluate the completeness of certain other assets, including evaluating contrary evidence. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to evaluate the completeness of certain other assets, including evaluating contrary evidence. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "15", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform any procedures to evaluate the completeness of certain other assets, including evaluating contrary evidence. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "16", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain other assets: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption for one of these assets because it did not evaluate the significant difference between this assumption and a related significant assumption used by the issuer in another estimate tested. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "17", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform any procedures to test the completeness and fair value of certain liabilities. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "17", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform any procedures to test the completeness and fair value of certain liabilities. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "17", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform any procedures to test the completeness and fair value of certain liabilities. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures to test the fair value of certain other liabilities, beyond obtaining and reading the valuation report prepared by the company’s specialist. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform sufficient procedures to test the completeness and valuation of certain other liabilities because it limited its procedures to cut-off testing. Further, the firm inappropriately projected the results of its cut-off testing, including misstatements identified, to the entire balance of those liabilities. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform sufficient procedures to test the completeness and valuation of certain other liabilities because it limited its procedures to cut-off testing. Further, the firm inappropriately projected the results of its cut-off testing, including misstatements identified, to the entire balance of those liabilities. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform sufficient procedures to test the completeness and valuation of certain other liabilities because it limited its procedures to cut-off testing. Further, the firm inappropriately projected the results of its cut-off testing, including misstatements identified, to the entire balance of those liabilities. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "20", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform procedures, beyond inquiry, to demonstrate that it had a reasonable basis for an assumption it derived and used in developing its independent expectation of the fair value of another liability. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "21", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The following deficiency was identified related to certain liabilities: \n· The firm did not perform any procedures to test, or in the alternative, identify and test controls over, the accuracy and completeness of data it used to develop its independent expectation. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "22", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of, or inaccurate, disclosures regarding certain assets and liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets and Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "22", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of, or inaccurate, disclosures regarding certain assets and liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to demonstrate that it had a reasonable basis for assumptions it derived and used to develop an independent expectation of an estimate related to certain assets. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test, or identify and test controls over, the accuracy of certain reports it used to develop this independent expectation. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5905", "Firm Names": "Rosenfield & Co PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified journal entries that met certain fraud criteria but did not examine the underlying support for the entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to process certain revenue transactions under multiple revenue recognition scenarios. To reduce the extent of its substantive procedures for this revenue, the firm tested and placed reliance on certain IT general controls (ITGCs). The following deficiencies were identified: \n· The firm selected for testing a change management control over this IT system that consisted of the testing and approval of system changes prior to their migration into the production environment. The issuer documented system changes in tickets that were entered into a change ticket tracking system. The firm did not perform sufficient procedures to test, or test any controls over, the completeness of the population of changes from which it made its selections for testing this control, because it limited its procedures to obtaining a list of change tickets from the change ticket tracking system without performing procedures to determine if there were changes that were not captured in that system. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to process certain revenue transactions under multiple revenue recognition scenarios. To reduce the extent of its substantive procedures for this revenue, the firm tested and placed reliance on certain IT general controls (ITGCs). The following deficiencies were identified: \n· The firm selected for testing another change management control over this IT system that consisted of the restriction of access to migrate system changes from the development environment into the production environment. The firm did not identify and evaluate a control design deficiency related to certain IT users that had the ability to develop system changes and migrate system changes from the development environment into the production environment. (AS 2301.19)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to process certain revenue transactions under multiple revenue recognition scenarios. To reduce the extent of its substantive procedures for this revenue, the firm tested and placed reliance on certain IT general controls (ITGCs). The following deficiencies were identified: \n· The firm did not perform sufficient procedures to test this revenue because it did not test (1) whether this IT system appropriately processed this revenue under each of the revenue recognition scenarios and (2) the inputs used in determining the revenue recognized. (AS \n2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system to process certain revenue transactions under multiple revenue recognition scenarios. To reduce the extent of its substantive procedures for this revenue, the firm tested and placed reliance on certain IT general controls (ITGCs). The firm did not perform procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data that it used to substantively test this revenue and certain other revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer evaluated goodwill and intangible assets for impairment for one reporting unit using a discounted cash flow model (“DCF model”), which was developed using various assumptions. The following deficiency was identified: \n· The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions related to forecasted operating expenses used by the issuer in its goodwill and intangible assets impairment analysis. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer evaluated goodwill and intangible assets for impairment for one reporting unit using a discounted cash flow model (“DCF model”), which was developed using various assumptions. The following deficiency was identified: \n· The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions related to forecasted revenue used by the issuer in its goodwill and intangible assets impairment analysis, as it limited its procedures to recalculating the compounded annual growth rate (CAGR) for revenue based on projected financial information and comparing it to the CAGR for the industry, without evaluating the projected financial information. Further, the firm did not evaluate the difference between the recalculated CAGR and the CAGR for the industry. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fraud Considerations", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain users of the issuer’s accounting system were identified as having the ability to create and approve manual journal entries. The firm did not identify and select journal entries for testing, or perform other audit procedures, to specifically address this risk. (AS 2301.08; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fraud Considerations", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "Certain users of the issuer’s accounting system were identified as having the ability to create and approve manual journal entries. The firm did not identify and select journal entries for testing, or perform other audit procedures, to specifically address this risk. (AS 2301.08; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified certain fraud criteria and obtained a listing of all journal entries that met the criteria. The firm did not examine the underlying support for the entries and, instead, limited its procedures to reading the journal entry descriptions. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm was instructed by the principal auditor to perform certain procedures to test revenue, including (1) analyzing the amount of inventory held by distributors at year-end, (2) testing cash disbursements to distributors, and (3) agreeing revenue transactions to cash receipts. The firm did not perform procedures (1) and (3) and, for (2), limited its testing of cash disbursements to distributors to those made subsequent to year-end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm was instructed by the principal auditor to perform certain procedures to test revenue, including (1) analyzing the amount of inventory held by distributors at year-end, (2) testing cash disbursements to distributors, and (3) agreeing revenue transactions to cash receipts. The firm did not perform procedures (1) and (3) and, for (2), limited its testing of cash disbursements to distributors to those made subsequent to year-end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm did not identify and test any controls over certain inventory. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm did not perform sufficient procedures to test this inventory, as it limited its procedures to (1) confirming the balance with the principal auditor and (2) reconciling the balance to the general ledger. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify certain of the deficiencies below.\nThe firm was instructed by the principal auditor to test any unusual cost of sales journal entries. The firm did not perform any procedures to identify and test any unusual cost of sales journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fraud Considerations", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm identified a fraud risk related to users of the issuer’s accounting system having the ability to create and approve manual journal entries. The firm did not identify and select journal entries for testing, or perform other audit procedures, to address this risk. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fraud Considerations", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm identified a fraud risk related to users of the issuer’s accounting system having the ability to create and approve manual journal entries. The firm did not identify and select journal entries for testing, or perform other audit procedures, to address this risk. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fraud Considerations", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified a fraud risk related to users of the issuer’s accounting system having the ability to create and approve manual journal entries. The firm did not identify and select journal entries for testing, or perform other audit procedures, to address this risk. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For one component, the firm did not identify and select manual journal entries for testing, or perform other audit procedures, to specifically address the identified risk related to expenses being recorded in the incorrect accounting period. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For one component, the firm did not identify and select manual journal entries for testing, or perform other audit procedures, to specifically address the identified risk related to expenses being recorded in the incorrect accounting period. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "For one component, the firm did not identify and select manual journal entries for testing, or perform other audit procedures, to specifically address the identified risk related to expenses being recorded in the incorrect accounting period. (AS 2301.08 and .13; AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5988", "Firm Names": "BDO AG", "Inspection Year": "2023", "Country": "Switzerland", "Global Network": "BDO International Limited", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "For another component, the firm identified certain fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries, because it limited its procedures to certain journal entries, without having an appropriate rationale for limiting its procedures to those journal entries. Further, the firm did not examine the underlying support for certain of the selected journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6135", "Firm Names": "Baker Tilly WM LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "Other Non-PCAOB Standards", "Paragraph of the Auditing Standard": "", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment of the impairment of certain goodwill. The following deficiency was identified: \n· The firm did not perform procedures to address the appropriateness of certain significant assumptions developed and used by management’s expert in the quantitative assessment. (CAS 500.8; CAS 540.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6135", "Firm Names": "Baker Tilly WM LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "Other Non-PCAOB Standards", "Paragraph of the Auditing Standard": "", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform a quantitative assessment of the impairment of certain goodwill. The following deficiency was identified: \n· The firm did not perform procedures to address the relevance and reliability of certain data the issuer used to develop certain significant assumptions, which management’s expert used in the quantitative assessment. (CAS 540.25)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Litigation, Claims, and Assessments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2505", "Paragraph of the Auditing Standard": "5", "Description in the Firm's Inspection Report": "The firm’s procedures for identifying litigation, claims, and assessments and determining whether the financial accounting and reporting of such matters was complete and accurate consisted solely of obtaining letters of audit inquiry from the client’s lawyers, without evaluating such responses and performing other necessary procedures. (AS 2505.05)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm did not perform procedures to evaluate whether the issuer’s recognition of this revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining its sample, the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining its sample, the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining its sample, the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The sample size the firm used in its substantive procedures to test this revenue was too small to provide sufficient appropriate audit evidence because, in determining its sample, the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm did not identify and evaluate a GAAP departure related to the issuer’s omission of disclosures related to significant payment terms for its customer contracts as required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "For certain other revenue, the following deficiency was identified: \n· The firm did not identify and evaluate a GAAP departure related to the issuer’s omission of disclosures related to significant payment terms for its customer contracts as required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test certain convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test certain convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm sent a positive confirmation request to the issuer’s lender for a convertible note payable. The confirmation was returned with an exception, and the firm did not consider the nature of the exception and whether additional evidence was needed. (AS 2310.33)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test the unamortized debt discount related to the convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test the unamortized debt discount related to the convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test the disclosures related to the convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer reported convertible notes payable with conversion features that were recorded as derivative liabilities. The following deficiency was identified with respect to convertible notes payable: \n· The firm did not perform any procedures to test the disclosures related to the convertible notes payable. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the derivative liabilities recorded for the conversion features embedded in the convertible debt: \n· The firm did not perform any procedures to evaluate the accounting treatment of the embedded conversion features as derivative liabilities. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the derivative liabilities recorded for the conversion features embedded in the convertible debt: \n· The firm did not perform any procedures to evaluate the accounting treatment of the embedded conversion features as derivative liabilities. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the derivative liabilities recorded for the conversion features embedded in the convertible debt: \n· The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading a company-provided memo. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the derivative liabilities recorded for the conversion features embedded in the convertible debt: \n· The firm did not perform any procedures to test the disclosures related to the derivative liabilities. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The following deficiency was identified with respect to the derivative liabilities recorded for the conversion features embedded in the convertible debt: \n· The firm did not perform any procedures to test the disclosures related to the derivative liabilities. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Liability", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent a positive confirmation request for a liability at year end. The respondent did not respond to the aspect of the confirmation request related to the amount of liability outstanding and informed the firm that the loans were sold to another entity. The firm did not perform any alternative procedures, including confirmation with the purchaser of the loans. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "he firm did not perform procedures to test the identified transactions with related parties, including whether the transactions were properly accounted for and disclosed in the issuer’s financial statements, beyond inquiry and obtaining information provided by the issuer about the transactions. (AS 2410.12 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "he firm did not perform procedures to test the identified transactions with related parties, including whether the transactions were properly accounted for and disclosed in the issuer’s financial statements, beyond inquiry and obtaining information provided by the issuer about the transactions. (AS 2410.12 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer had properly identified all of its related parties and relationships and transactions with related parties, including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer had properly identified all of its related parties and relationships and transactions with related parties, including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of disclosures required by FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "67", "Description in the Firm's Inspection Report": "The issuer entered into certain significant transactions during the year. The firm did not evaluate the business purpose (or lack thereof) of these transactions that appeared unusual due to the timing, size, or nature, including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding these transactions. (AS 2401.67)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "In addition, the firm did not perform procedures to test the transactions, including the appropriateness of the accounting treatment, the valuation, and the related disclosures. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Subsequent Events", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test a subsequent event transaction, beyond inquiry and obtaining a board resolution regarding the planned transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain liabilities. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "To test another liability, the firm sent a positive confirmation request to an external party and received the response via email. 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test another liability, the firm sent a positive confirmation request to an external party and received the response via email. The firm obtained bank statements showing certain deposits related to this liability. The firm did not perform procedures to verify the source of those deposits. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain related party transactions and balances, including whether they were properly disclosed in the financial statements, beyond inquiry with management. (AS 2410.12 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain related party transactions and balances, including whether they were properly disclosed in the financial statements, beyond inquiry with management. (AS 2410.12 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Share-Based Payment Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer issued stock in exchange for services provided. The firm did not perform any procedures to test whether share-based expenses were recognized in the appropriate period and in accordance with the terms of the relevant agreements, including whether the issuance of shares of common stock was approved by the issuer’s Board of Directors. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Share-Based Payment Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to certain share-based payment transactions required by FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Share-Based Payment Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to certain share-based payment transactions required by FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6662", "Firm Names": "M. S. Madhava Rao", "Inspection Year": "2023", "Country": "India", "Global Network": "", "Inspection Report Date": "28-Apr-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm selected for testing certain reserve governance controls that included the issuer’s (1) review and verification of the internal and external data, including non-financial data, future production volumes (“production profiles”), and other relevant data, used to determine its reserve estimates, (2) evaluation of the appropriateness of its reserve classifications, and (3) evaluation of the consistency of its reserve estimates with the results of the review performed by the company’s engaged specialists. The following deficiencies were identified:\n· The firm did not test aspects of the reserve governance controls that (1) addressed the accuracy and completeness of non-financial data produced by the issuer and (2) evaluated the relevance and reliability of non-financial data from external sources, used by the control owners in their review of the production profiles. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm selected for testing certain reserve governance controls that included the issuer’s (1) review and verification of the internal and external data, including non-financial data, future production volumes (“production profiles”), and other relevant data, used to determine its reserve estimates, (2) evaluation of the appropriateness of its reserve classifications, and (3) evaluation of the consistency of its reserve estimates with the results of the review performed by the company’s engaged specialists. The following deficiencies were identified:\n· The firm did not test aspects of the reserve governance controls that (1) addressed the accuracy and completeness of non-financial data produced by the issuer and (2) evaluated the relevance and reliability of non-financial data from external sources, used by the control owners in their review of the production profiles. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm selected for testing certain reserve governance controls that included the issuer’s (1) review and verification of the internal and external data, including non-financial data, future production volumes (“production profiles”), and other relevant data, used to determine its reserve estimates, (2) evaluation of the appropriateness of its reserve classifications, and (3) evaluation of the consistency of its reserve estimates with the results of the review performed by the company’s engaged specialists. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the (1) reasonableness of the production profiles and (2) appropriateness of the methods used to determine the reserve estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm selected for testing certain reserve governance controls that included the issuer’s (1) review and verification of the internal and external data, including non-financial data, future production volumes (“production profiles”), and other relevant data, used to determine its reserve estimates, (2) evaluation of the appropriateness of its reserve classifications, and (3) evaluation of the consistency of its reserve estimates with the results of the review performed by the company’s engaged specialists. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures that the control owners performed to evaluate the (1) reasonableness of the production profiles and (2) appropriateness of the methods used to determine the reserve estimates. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not:\n· Test the accuracy and completeness of the non-financial data prepared by the issuer and used by the company’s employed specialists to develop the reserve estimates; (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not:\n· Evaluate the relevance and reliability of external data used by the company’s employed specialists to develop the reserve estimates; (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not:\n· Evaluate the reasonableness of the production profiles, which were considered significant assumptions by the firm, developed by the company’s employed specialists and used to develop the reserve estimates; (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "30", "Firm Names": "PricewaterhouseCoopers SpA", "Inspection Year": "2023", "Country": "Italy", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer utilized internal specialists (company’s employed specialists), including reserve engineers, to estimate its oil and gas reserves (“reserve estimates”), which were then used in the (1) calculation of depreciation, depletion, and amortization and (2) impairment analysis of long-lived assets. The issuer also engaged external reserve engineers (company’s engaged specialists) to audit and evaluate its proven reserves on a rotational basis.\nThe firm’s approach for substantively testing the reserve estimates was to test the issuer’s process. The firm did not perform sufficient procedures to test the reserve estimates because the firm did not:\n· Evaluate whether the methods used by the company’s engaged specialists to develop the reserve estimates were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, beyond inquiry of the methods used with the company’s engaged specialists. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not evaluate the review procedures that the control owner performed with respect to certain qualitative factors, 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not evaluate the review procedures that the control owner performed with respect to certain qualitative factors, 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to certain qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to certain qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to certain qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer’s general reserve component of the ALL included a qualitative reserve component that was determined by certain qualitative factors. The firm selected for testing a control that included the review of the qualitative component of the general reserve. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and performing a trend analysis, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year and the results from the resulting from the comparison and trend analysis were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and performing a trend analysis, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year and the results from the resulting from the comparison and trend analysis were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "57", "Firm Names": "Dixon Hughes Goodman LLP", "Inspection Year": "2020", "Country": "United States", "Global Network": "", "Inspection Report Date": "27Mar2025", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to review and test management’s process. The firm did not perform procedures to evaluate the reasonableness of the basis points that were applied to qualitative factors, beyond (1) reading the issuer’s analysis, (2) comparing the basis points that were applied to the qualitative factors to the basis points that were applied in the prior year and performing a trend analysis, and (3) assessing whether certain changes, or lack thereof, to the basis points from the prior year and the results from the resulting from the comparison and trend analysis were directionally consistent with internal or external data. (AS 2501.09, .10, and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test whether inventory was recorded at the lower of cost or net realizable value. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified:\n· The firm used certain data in its substantive procedures to test this reserve but did not perform any procedures to test, or test any controls over, the accuracy of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified:\n· The firm did not perform procedures to demonstrate it had a reasonable basis for certain assumptions it independently derived. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for the method used to develop its independent expectation because it did not demonstrate how its method took into account its understanding of the issuer’s process, including the significant assumptions used by the issuer, so that its expectation considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "58", "Firm Names": "Fitzgerald & Co., CPAS, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the excess or obsolete inventory reserve was to develop an independent expectation. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for the method used to develop its independent expectation because it did not demonstrate how its method took into account its understanding of the issuer’s process, including the significant assumptions used by the issuer, so that its expectation considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain expenses was to test the issuer’s process. The firm did not perform procedures to test, or test controls over, the accuracy and completeness of data it used to substantively test the expenses. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing certain expenses was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions used by the issuer to estimate the expenses. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for and disclosure of certain notes payable was in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatements due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain expenses, beyond inquiry of the issuer’s external accountant. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain expenses, beyond inquiry of the issuer’s external accountant. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test an amount due to a related party, beyond reviewing minutes from the Board of Directors meetings. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "473", "Firm Names": "Liebman Hymowitz, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not identify and select journal entries and other adjustments for testing to address the potential for material misstatements due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm’s approach for testing the qualitative reserve was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions related to the qualitative factors the issuer used to determine the qualitative reserve because it limited its procedures to reading the issuer’s ALL methodology and evaluating the consistency of the assumptions with those used in prior periods. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm’s approach for testing the qualitative reserve was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the relevance and reliability of external information that the issuer used to develop the significant assumptions related to qualitative factors. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm’s approach for testing the qualitative reserve was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the relevance and reliability of external information that the issuer used to develop the significant assumptions related to qualitative factors. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used various qualitative factors to determine the qualitative component of the ALL. The firm’s approach for testing the qualitative reserve was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test, or identify and test any controls over, the accuracy and completeness of issuer-produced information that the issuer used to develop the significant assumptions related to the qualitative factors, because it limited its procedures to inquiries and performing certain recalculations and comparisons of certain of the information to other issuer-prepared information. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not test the accuracy and completeness of issuer-produced information, and evaluate the relevance and reliability of external information, used by the company’s specialists to determine the fair value of the properties used as collateral. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of significant assumptions used by the company’s specialists to determine the fair value of the properties used as collateral. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of significant assumptions used by the company’s specialists to determine the fair value of the properties used as collateral. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company’s specialists and whether the specialists’ findings supported or contradicted the fair value of the collateral because it did not evaluate that the appraisals were not prepared as of the end of the year and perform additional procedures to address the potential effect of the timing difference on the fair value of the collateral. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the relevance and reliability of the work performed by the company’s specialists and whether the specialists’ findings supported or contradicted the fair value of the collateral because it did not evaluate that the appraisals were not prepared as of the end of the year and perform additional procedures to address the potential effect of the timing difference on the fair value of the collateral. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for certain assumptions it developed because it did not demonstrate how its assumptions took into account its understanding of the company’s process that included certain information about the properties used as collateral, so that its expectations considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to demonstrate it had a reasonable basis for certain assumptions it developed because it did not demonstrate how its assumptions took into account its understanding of the company’s process that included certain information about the properties used as collateral, so that its expectations considered the factors relevant to the estimate. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reliability of external information that the firm used to develop its independent expectation of the specific reserve. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reliability of external information that the firm used to develop its independent expectation of the specific reserve. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to demonstrate it had a reasonable basis for another assumption it developed and used in its independent expectation of the specific reserve. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer’s ALL also included a specific reserve for impaired loans. The issuer engaged external specialists to determine the fair value of certain property that served as collateral for certain impaired loans. The firm’s approach for substantively testing the specific reserve was to develop an independent expectation of the specific reserve that included use of the work of the company’s specialists as audit evidence. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of another significant assumption that the issuer developed and it used in its independent expectation of the specific reserve. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2601", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions related to deposit liabilities.\nThe firm’s approach to testing deposit liabilities included reliance on controls. The following deficiencies were identified:\n· The service auditor’s report for the service organization contained a qualified opinion because controls were not operating effectively to achieve a control objective related to logical access to programs, data, and computer resources. The firm did not perform sufficient procedures to evaluate whether the service auditor’s report provided sufficient appropriate audit evidence to support the firm’s reliance on the service organization’s controls because it concluded that the identified control deficiencies did not have an effect on its reliance on controls without performing procedures to support its conclusion. Further, given the length of period under audit not covered by the service auditor’s report, the firm inappropriately limited its procedures to reading the bridge letter that only addressed a portion of that period of time. (AS 2601.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2601", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions related to deposit liabilities.\nThe firm’s approach to testing deposit liabilities included reliance on controls. The following deficiencies were identified:\n· The firm did not perform procedures to test, beyond inquiring of management, certain complementary user controls over deposit liabilities identified in the service auditor’s report. (AS 2601.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test deposit liabilities were too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "601", "Firm Names": "LaPorte, A Professional Accounting Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified characteristics of potentially fraudulent entries or adjustments for testing, determined that certain journal entries met those characteristics, but limited its testing to haphazardly selected journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain intangible assets was to develop an independent expectation, which included significant assumptions that were developed by the issuer and the firm. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of a certain significant assumption that was developed by the issuer, because the firm did not (1) evaluate whether the issuer had a reasonable basis for this assumption, and (2) take into account the issuer’s intent and ability to carry out this assumption, beyond performing inquiries of management and inspecting invoices. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain intangible assets was to develop an independent expectation, which included significant assumptions that were developed by the issuer and the firm. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of a certain significant assumption that was developed by the issuer, because the firm did not (1) evaluate whether the issuer had a reasonable basis for this assumption, and (2) take into account the issuer’s intent and ability to carry out this assumption, beyond performing inquiries of management and inspecting invoices. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain intangible assets was to develop an independent expectation, which included significant assumptions that were developed by the issuer and the firm. The following deficiencies were identified:\n· The firm did not perform any procedures to demonstrate that it had a reasonable basis for a certain significant assumption that was developed by the firm, including taking into account the requirements of certain elements of the applicable financial framework. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment analysis for certain intangible assets was to develop an independent expectation, which included significant assumptions that were developed by the issuer and the firm. The following deficiencies were identified:\n· The firm did not perform any procedures to demonstrate that it had a reasonable basis for a certain significant assumption that was developed by the firm, including taking into account the requirements of certain elements of the applicable financial framework. (AS 2501.21 and .22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) application to process inventory transactions and calculate inventory costs. To reduce the extent of its substantive procedures over the valuation of inventory, the firm tested and placed reliance on certain application controls. The following deficiencies were identified:\n· The firm selected for testing a logical access control over this IT application. The firm did not perform procedures to test the design and operating effectiveness of this control, beyond observing the control owner perform a point in time logical access review. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "34", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) application to process inventory transactions and calculate inventory costs. To reduce the extent of its substantive procedures over the valuation of inventory, the firm tested and placed reliance on certain application controls. The following deficiencies were identified:\n· The firm selected for testing a logical access control over this IT application. The firm identified a control deficiency in its testing of this control, but did not evaluate the severity of this deficiency and its effect on its control risk assessment. (AS 2301.34)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) application to process inventory transactions and calculate inventory costs. To reduce the extent of its substantive procedures over the valuation of inventory, the firm tested and placed reliance on certain application controls. The following deficiencies were identified:\n· The firm did not identify and test any controls related to program changes for this IT system. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The sample size the firm used in certain of its substantive procedures to test the valuation of inventory was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test the valuation of inventory, as follows:\n· The firm did not perform any procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data that it used to substantively test the valuation of inventory. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient procedures to test those journal entries because, other than inquiries of management, it limited its procedures to one journal entry without having an appropriate rationale for limiting its testing to that journal entry. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain significant assumptions used by the issuer to determine the cost of certain inventory. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform any procedures to test these journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop significant inputs used to determine the fair value of certain long-lived assets. The following deficiencies were identified:\n· The firm did not test the accuracy and completeness of certain company-produced data used by the company’s specialist. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop significant inputs used to determine the fair value of certain long-lived assets. The following deficiencies were identified:\n· The firm did not evaluate the relevance and reliability of certain data from external sources used by the company’s specialist. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop significant inputs used to determine the fair value of certain long-lived assets. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist and the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop significant inputs used to determine the fair value of certain long-lived assets. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist and the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "995", "Firm Names": "Smythe LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop significant inputs used to determine the fair value of certain long-lived assets. The following deficiencies were identified:\n· The firm did not evaluate whether the methods used by the company’s specialist were appropriate under the circumstances, taking into account the requirements of IFRS. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1247", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "Singapore", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to test the fair value of certain assets. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B21", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions related to loans and for information it used to determine the ALL. In addition, the issuer used data and reports from this service organization in the operation of certain controls the firm selected for testing. The firm did not evaluate whether the service auditor’s report provided sufficient evidence, because the firm did not assess the scope of the examination and applications covered, the controls tested, the way in which the tested controls related to the issuer’s controls, and the results for those tests of controls. (AS 2201.B21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B21", "Description in the Firm's Inspection Report": "The issuer used a service organization to process and record transactions related to loans and for information it used to determine the ALL. In addition, the issuer used data and reports from this service organization in the operation of certain controls the firm selected for testing. The firm did not evaluate whether the service auditor’s report provided sufficient evidence, because the firm did not assess the scope of the examination and applications covered, the controls tested, the way in which the tested controls related to the issuer’s controls, and the results for those tests of controls. (AS 2201.B21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of the adequacy of the ALL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of certain assumptions used to determine the ALL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of the adequacy of the ALL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of certain assumptions used to determine the ALL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of the adequacy of the ALL. The firm did not identify and test any controls over the appropriateness of the loan grades that were an important factor in estimating the ALL. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reasonableness of certain other significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform any procedures to test, or in the alternative, sufficiently test controls over, the accuracy of certain data produced by the service organization and used by the issuer in estimating the ALL. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform any procedures to test, or in the alternative, sufficiently test controls over, the accuracy of certain data produced by the service organization and used by the issuer in estimating the ALL. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over journal entries to address the risk of management override of controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions, because the firm did not evaluate whether the issuer had a reasonable basis for these assumptions. Further, the firm used certain external data to develop an expectation for the range of these significant assumptions, but did not perform procedures to evaluate the relevance of this data. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The issuer used certain data produced by its service organization to develop the ALL. The firm did not perform procedures to test the accuracy of this data. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1884", "Firm Names": "Bonadio & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the ALL was to test the issuer’s process. The issuer used certain data produced by its service organization to develop the ALL. The firm did not perform procedures to test the accuracy of this data. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nTo test certain revenue, the firm relied on confirmations from customers. The issuer’s sales personnel directly contacted the customers and obtained customer signatures as proof of customer receipt of goods purchased. The issuer provided the firm with the signed confirmations. The firm did not maintain control over the confirmation requests and responses through direct communication between the firm and the intended recipients of the confirmation requests. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Evaluate the relevance of the cash receipts information that was used in its testing; (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Evaluate the relevance of the cash receipts information that was used in its testing; (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Perform any procedures to test contra revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain other revenue, the firm vouched monthly total cash receipts for certain payment methods for certain months to bank statements, and for the remaining months, selected three cash receipts per month and vouched them to bank statements. The firm did not:\n· Perform any procedures to test contra revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Perform any procedures to test whether the performance obligations had been satisfied before revenue was recognized; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Perform any procedures to evaluate the difference identified between total cash receipts for this type of revenue and revenue recorded in the general ledger; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Perform any procedures to evaluate the difference identified between total cash receipts for this type of revenue and revenue recorded in the general ledger; (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Evaluate the relevance of the cash receipts information that was used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to another type of revenue, the firm (1) obtained an issuer-produced summary of daily sales reports for the year and compared the total sales to the general ledger, and (2) vouched total cash receipts recorded for the year in the general ledger for that type of revenue to bank statements, noting a difference between the amounts. The firm did not:\n· Evaluate the relevance of the cash receipts information that was used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm sent positive confirmation requests to the issuer’s customers for a sample of accounts receivable. The firm did not perform sufficient alternative procedures to determine that the recorded amounts of the accounts receivable existed as of the year end, because the procedures were limited to tracing to internal documents indicating the date of product delivery. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer entered into a significant transaction during the year. The following deficiencies were identified:\n· The firm did not perform any procedures to test the valuation of aspects of the transaction. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer entered into a significant transaction during the year. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the accounting for the transaction, including the subsequent accounting. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer entered into a significant transaction during the year. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the presentation and disclosures related to the transaction. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "67", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer entered into a significant transaction during the year. The following deficiencies were identified:\n· The firm did not evaluate the business purpose (or lack thereof) of the transaction that appeared unusual due to its timing, size, or nature, including whether it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets, given certain facts indicating the transaction was significant and unusual. (AS 2401.67)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Parties", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not evaluate whether the issuer had properly identified its related parties and relationships and transactions with related parties, including testing the accuracy and completeness of the related parties and relationships and transactions with related parties identified by the issuer. (AS 2410.14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Parties", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required under FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Parties", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required under FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Parties", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures required under FASB ASC Topic 850, Related Party Disclosures. (AS 2410.17; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain revenue, the firm did not sufficiently evaluate whether there was a contract with a customer. Specifically, the firm did not assess whether it was probable that the issuer would collect substantially all of the consideration to which it would be entitled in exchange for the goods or services that would be transferred to the customer before revenue was recognized, including consideration of contradictory evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For certain revenue, the firm did not sufficiently evaluate whether there was a contract with a customer. Specifically, the firm did not assess whether it was probable that the issuer would collect substantially all of the consideration to which it would be entitled in exchange for the goods or services that would be transferred to the customer before revenue was recognized, including consideration of contradictory evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2851", "Firm Names": "KCCW Accountancy Corp.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "For certain revenue, the firm did not sufficiently evaluate whether there was a contract with a customer. Specifically, the firm did not assess whether it was probable that the issuer would collect substantially all of the consideration to which it would be entitled in exchange for the goods or services that would be transferred to the customer before revenue was recognized, including consideration of contradictory evidence. (AS 2301.08 and .13; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not test transaction prices used in recording revenue for one business entity. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not test transaction prices used in recording revenue for one business entity. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not test, or identify and test any controls over, the completeness of a system-generated report used in its substantive procedures to test revenue for this business entity. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform any procedures to test the occurrence and allocation of certain revenue for another business entity. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform any procedures to test the occurrence and allocation of certain revenue for another business entity. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test certain revenue for the above business entity and a third business entity because its procedures were limited to (1) agreeing revenue to sales invoices and (2) documenting the terms of the agreement with customers for certain transactions. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test certain revenue for the above business entity and a third business entity because its procedures were limited to (1) agreeing revenue to sales invoices and (2) documenting the terms of the agreement with customers for certain transactions. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test revenues for each of the three above business entities were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test revenues for each of the three above business entities were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test revenues for each of the three above business entities were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test revenues for each of the three above business entities were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test revenue for a fourth business entity because it did not test the adjustment of revenue for the redemption of gift cards. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test revenue for a fourth business entity because it did not test the adjustment of revenue for the redemption of gift cards. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test revenue for a fifth business entity because its procedures were limited to agreeing revenue to issuer-produced sales invoices. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business entities. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to test revenue for a fifth business entity because its procedures were limited to agreeing revenue to issuer-produced sales invoices. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of a revenue variance analysis but did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of a revenue variance analysis but did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the disclosure related to revenue allocated to remaining performance obligations. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the disclosure related to revenue allocated to remaining performance obligations. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm did not identify and test any controls over accounts receivable for one of the issuer’s business entities. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a control over the review of outstanding accounts receivable for another business entity but did not perform any procedures to test the design and operating effectiveness of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a control over the review of outstanding accounts receivable for another business entity but did not perform any procedures to test the design and operating effectiveness of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a control over the review of delinquent accounts receivable for a third business entity but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the reserve for the recorded accounts receivable. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a control over the review of delinquent accounts receivable for a third business entity but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the reserve for the recorded accounts receivable. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm did not test, or test controls over, the accuracy and completeness of system-generated reports used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The firm did not perform any procedures over accounts receivable selected for testing that were not collected or were only partially collected in subsequent periods. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The firm did not perform any procedures to test whether services had been rendered prior to the issuer’s recording of certain unbilled receivables. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm selected for testing a sample of accounts receivable for certain business entities and unbilled receivables for certain other business entities. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures were too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the populations, the allowable risk of incorrect acceptance, and the characteristics of the populations. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported accounts receivables, including unbilled receivables, for multiple business entities.\nThe firm did not perform sufficient procedures to test the valuation of accounts receivable and unbilled receivables because its procedures to test the allowance for doubtful accounts were limited to inquiry of management. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "18", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "45", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond obtaining a certification from issuer personnel, to extend its conclusions regarding the existence of cash on hand from the interim date in which the audit procedures were performed to year end. (AS 2301.45)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain other cash held at banking institutions. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain other cash held at banking institutions. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "20", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of goodwill and intangible assets for potential impairment. The firm did not evaluate the specific review procedures performed by the control owners to assess the reasonableness of the methodologies and assumptions used in the issuer’s goodwill and indefinite-lived intangible assets impairment analyses. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "20", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of goodwill and intangible assets for potential impairment. The firm did not evaluate the specific review procedures performed by the control owners to assess the reasonableness of the methodologies and assumptions used in the issuer’s goodwill and indefinite-lived intangible assets impairment analyses. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "20", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of goodwill and intangible assets for potential impairment. The firm did not evaluate the specific review procedures performed by the control owners to assess the reasonableness of the methodologies and assumptions used in the issuer’s goodwill and indefinite-lived intangible assets impairment analyses. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "20", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that included the review of goodwill and intangible assets for potential impairment. The firm did not evaluate the specific review procedures performed by the control owners to assess the reasonableness of the methodologies and assumptions used in the issuer’s goodwill and indefinite-lived intangible assets impairment analyses. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "21", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test (1) the appropriateness of the issuer’s determination that it operated as a single reporting unit for purposes of its impairment analysis in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, and (2) whether the issuer’s conclusion that the customer relationship intangible asset had an indefinite life was in accordance with FASB ASC Topic 350. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "21", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test (1) the appropriateness of the issuer’s determination that it operated as a single reporting unit for purposes of its impairment analysis in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, and (2) whether the issuer’s conclusion that the customer relationship intangible asset had an indefinite life was in accordance with FASB ASC Topic 350. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "21", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test (1) the appropriateness of the issuer’s determination that it operated as a single reporting unit for purposes of its impairment analysis in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, and (2) whether the issuer’s conclusion that the customer relationship intangible asset had an indefinite life was in accordance with FASB ASC Topic 350. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "21", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test (1) the appropriateness of the issuer’s determination that it operated as a single reporting unit for purposes of its impairment analysis in accordance with FASB ASC Topic 350, Intangibles – Goodwill and Other, and (2) whether the issuer’s conclusion that the customer relationship intangible asset had an indefinite life was in accordance with FASB ASC Topic 350. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "22", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not (1) appropriately consider the characteristics of potentially fraudulent journal entries when identifying and selecting journal entries for testing, and (2) examine the underlying support for journal entries selected for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Corrected and Uncorrected Misstatements", "Firm-Identified Risk Assessment": "", "Finding Count": "23", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm identified corrected and uncorrected misstatements during its substantive audit procedures. The firm did not evaluate whether the uncorrected misstatements were material, individually or in combination with other misstatements. (AS 2810.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3199", "Firm Names": "K G Somani & Co. LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Corrected and Uncorrected Misstatements", "Firm-Identified Risk Assessment": "", "Finding Count": "24", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B8", "Description in the Firm's Inspection Report": "The firm identified corrected and uncorrected misstatements during its substantive audit procedures. The firm did not evaluate the effects of the corrected and uncorrected misstatements on its conclusions regarding the effectiveness of ICFR. (AS 2201.B8)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of its intangible assets. The firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used in the issuer’s quantitative assessment, beyond (1) inquiry, (2) obtaining and reading the issuer’s analysis, certain internal documentation, and letters of intent from customers, and (3) performing a sensitivity analysis. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of its intangible assets. The firm did not sufficiently evaluate the reasonableness of the significant assumption related to the discount rate the issuer used in the quantitative assessment, because it limited its procedures to comparing this assumption to the issuer’s cost of borrowing. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer’s presentation of this transaction in the financial statements. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer’s presentation of this transaction in the financial statements. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to this transaction. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer completed a significant transaction. The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to this transaction. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on its estimated progress toward complete satisfaction of the performance obligations. The firm did not perform procedures to test this revenue beyond selecting a sample of revenue transactions and vouching them to contracts and invoices. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on its estimated progress toward complete satisfaction of the performance obligations. The firm did not perform any procedures to test a disclosure related to this revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on an agreement with an external party. The firm did not perform sufficient procedures to evaluate whether the issuer appropriately accounted for this significant account in accordance with GAAP because it limited its procedures to concluding that the significant account was appropriately recorded based on certain GAAP guidance that specifically excluded the significant account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6743", "Firm Names": "J&S Associate PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Mar-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded a significant account based on an agreement with an external party. The firm did not evaluate the effect of the issuer’s non-compliance with a requirement of the agreement on the accounting for the significant account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform procedures to test the quantitative assessment of goodwill performed during the year, beyond inquiry and obtaining and reading the company’s specialist report. Further, the firm did not perform any procedures to evaluate the work of the company’s specialist. (AS 1105.A6 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the relevance of data related to comparable companies used by the company’s specialist in the year-end quantitative assessment, because it did not evaluate (1) the relative values of income statement accounts in concluding that the companies were comparable and (2) that the data used from certain of the comparable companies was significantly dated. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reasonableness of a significant assumption developed and used by the company’s specialist in the year-end quantitative assessment. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not identify and evaluate a GAAP departure related to the issuer’s omission of a disclosure related to goodwill that is required by FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "106", "Firm Names": "Salberg & Company, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nDuring the year, after identifying impairment indicators, the issuer performed a quantitative assessment of impairment. At year end, the issuer performed its annual goodwill impairment assessment, using a quantitative assessment. The issuer engaged a specialist to perform both assessments. The following deficiencies were identified:\n· The firm did not identify and evaluate a GAAP departure related to the issuer’s omission of a disclosure related to goodwill that is required by FASB ASC Topic 350, Intangibles – Goodwill and Other. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of information technology general controls (ITGCs) and certain automated and IT-dependent manual controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures. The following deficiencies were identified:\n· The firm selected for testing controls over the review and approval of program changes, but did not evaluate whether the controls were designed to address the risk that developers have the ability to develop and promote changes to production environments. (AS 2301.19)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of information technology general controls (ITGCs) and certain automated and IT-dependent manual controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures. The following deficiencies were identified:\n· The firm selected for testing controls over change management but did not perform procedures to determine whether the population of changes from which it made its selections for testing represented the complete population of changes made to this application. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of information technology general controls (ITGCs) and certain automated and IT-dependent manual controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures. The following deficiencies were identified:\n· The firm selected for testing certain automated and IT-dependent manual controls over this revenue. The firm’s approach to testing these controls depended on effective ITGCs, including controls over change management. As a result of the deficiencies in the firm’s testing of the controls discussed above, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of information technology general controls (ITGCs) and certain automated and IT-dependent manual controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures. The following deficiencies were identified:\n· The firm did not identify and test controls that addressed the issuer’s evaluation of the reliability of external information used in the operation of certain controls the firm selected for testing. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm did not perform procedures to test the issuer’s segment reporting disclosures related to revenue, beyond obtaining an issuer-prepared schedule. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used certain information produced by the issuer’s service organization to test digital assets but did not perform procedures that addressed the accuracy and completeness of this data. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used certain information produced by the issuer’s service organization to test digital assets but did not perform procedures that addressed the accuracy and completeness of this data. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used certain other external information to test digital assets but did not perform procedures to evaluate the reliability of the information beyond obtaining an understanding of the source of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used certain other external information to test digital assets but did not perform procedures to evaluate the reliability of the information beyond obtaining an understanding of the source of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "34", "Description in the Firm's Inspection Report": "The issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of ITGCs and certain automated controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures over certain revenue. The firm\ndetermined that certain ITGCs were not effective at year end. The following deficiencies were identified:\n· The firm did not evaluate the severity of the ITGC deficiencies and the effect on its control risk assessment. (AS 2301.34)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used a customized application for processing and recording transactions related to revenue. The firm tested the design and operating effectiveness of ITGCs and certain automated controls over this application in order to rely on the completeness and accuracy of data and reports produced by the application and used by the firm in its substantive procedures over certain revenue. The firm\ndetermined that certain ITGCs were not effective at year end. The following deficiencies were identified:\n· The firm’s approach to testing certain automated controls depended on effective ITGCs. As a result of the control deficiencies that the firm identified, as discussed above, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Restricted Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain disclosures related to the nature of restrictions for restricted cash, beyond reading the issuer’s prior year financial statements. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue. The firm did not perform procedures, other than reviewing certain information on selected invoices, to test whether the delivery of services had occurred prior to the issuer’s recognition of revenue for certain sampled transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue. The firm did not perform procedures, other than reviewing certain information on selected invoices, to test whether the delivery of services had occurred prior to the issuer’s recognition of revenue for certain sampled transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test revenue. The firm selected its sample of transactions from three of the four types of revenue. The firm did not perform any procedures to test the fourth type of revenue. (AS 2315.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business that resulted in an acquired intangible asset. The firm did not perform any procedures to test, or identify and test controls over, the accuracy and completeness of issuer-produced data it used to evaluate the reasonableness of a significant assumption. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business that resulted in an acquired intangible asset. The firm did not identify and evaluate the issuer’s omission of certain disclosures related to this business combination that were required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business that resulted in an acquired intangible asset. The firm did not identify and evaluate the issuer’s omission of certain disclosures related to this business combination that were required by FASB ASC Topic 805, Business Combinations. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer because it limited its procedures to comparing the assumptions to industry information. Further, the firm did not perform any procedures to evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer because it limited its procedures to comparing the assumptions to industry information. Further, the firm did not perform any procedures to evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer because it limited its procedures to comparing the assumptions to industry information. Further, the firm did not perform any procedures to evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the issuer because it limited its procedures to comparing the assumption to industry information without evaluating the significant difference between the assumption and the industry information. Further, the firm did not evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the issuer because it limited its procedures to comparing the assumption to industry information without evaluating the significant difference between the assumption and the industry information. Further, the firm did not evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the issuer because it limited its procedures to comparing the assumption to industry information without evaluating the significant difference between the assumption and the industry information. Further, the firm did not evaluate the reliability of the industry information. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform any procedures to test the accuracy and completeness of certain issuer-produced data used by the company’s specialist to develop a significant assumption. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reliability of industry information it used to evaluate the reasonableness of an assumption developed by the company’s specialist. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair value of an acquired intangible asset. The following deficiencies were identified:\n· The firm did not perform any procedures to evaluate the reliability of industry information it used to evaluate the reasonableness of an assumption developed by the company’s specialist. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm tested the design and operating effectiveness of certain ITGCs over the issuer’s general ledger and other systems in order to rely on the accuracy and completeness of underlying data produced by the issuer that was used in the firm’s substantive testing of certain revenue. The firm identified deficiencies in its testing of certain ITGCs. The following deficiencies were identified:\n· The firm identified compensating controls but did not perform any procedures to test the design and operating effectiveness of those controls during the entire period of reliance. (AS 2301.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm tested the design and operating effectiveness of certain ITGCs over the issuer’s general ledger and other systems in order to rely on the accuracy and completeness of underlying data produced by the issuer that was used in the firm’s substantive testing of certain revenue. The firm identified deficiencies in its testing of certain ITGCs. The following deficiencies were identified:\n· The firm selected for testing certain automated and IT-dependent manual controls over this revenue. The firm’s approach to testing these controls depended on effective IT general controls (ITGCs). As a result of the deficiency in the firm’s testing of the controls discussed above, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer’s customer determined the amount of consideration for the performance obligations at the time the issuer satisfied its obligations. The firm did not perform procedures to assess whether (1) the issuer’s determination of transaction price used to recognize revenue was appropriate and (2) the issuer satisfied its performance obligations prior to the recognition of revenue, beyond reading the issuer’s revenue recognition memo and confirming, with the issuer’s customer, the payments made to the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer’s customer determined the amount of consideration for the performance obligations at the time the issuer satisfied its obligations. The firm did not perform procedures to assess whether (1) the issuer’s determination of transaction price used to recognize revenue was appropriate and (2) the issuer satisfied its performance obligations prior to the recognition of revenue, beyond reading the issuer’s revenue recognition memo and confirming, with the issuer’s customer, the payments made to the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm’s substantive procedures to test revenue included substantive analytical procedures. The firm used external data and data derived from the recorded amounts of revenue to develop its expectation. The firm did not evaluate whether the external data was sufficiently reliable for purposes of achieving its audit objective, beyond obtaining an understanding of the source of the data. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm’s substantive procedures to test revenue included substantive analytical procedures. The firm used external data and data derived from the recorded amounts of revenue to develop its expectation. The firm did not evaluate whether the data derived from recorded amounts of revenue was sufficiently relevant and reliable for the purpose of achieving its audit objective. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm’s substantive procedures to test revenue included substantive analytical procedures. The firm used external data and data derived from the recorded amounts of revenue to develop its expectation. The firm did not evaluate whether the data derived from recorded amounts of revenue was sufficiently relevant and reliable for the purpose of achieving its audit objective. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "206", "Firm Names": "MaloneBailey, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm’s substantive procedures to test revenue included substantive analytical procedures. The firm used external data and data derived from the recorded amounts of revenue to develop its expectation. The firm did not evaluate whether the data derived from recorded amounts of revenue was sufficiently relevant and reliable for the purpose of achieving its audit objective. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm designed a substantive procedure for testing four types of revenue as a dual-purpose test. The firm performed its substantive procedure using the sample size it determined for its control testing. This sample size was too small to provide sufficient appropriate audit evidence for the substantive procedure because the firm did not use the larger of the sample sizes that would otherwise have been designed for the two separate purposes. (AS 2315.44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm designed a substantive procedure for testing four types of revenue as a dual-purpose test. The firm performed its substantive procedure using the sample size it determined for its control testing. For the selected revenue transactions, the firm did not perform procedures to test whether the issuer satisfied its performance obligations prior to the recognition of revenue, beyond obtaining certain issuer-produced reports and testing the timing of cash receipts. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm designed a substantive procedure for testing four types of revenue as a dual-purpose test. The firm performed its substantive procedure using the sample size it determined for its control testing. For the selected revenue transactions, the firm did not perform procedures to test whether the issuer satisfied its performance obligations prior to the recognition of revenue, beyond obtaining certain issuer-produced reports and testing the timing of cash receipts. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test three of these types of revenue included analytical procedures. The following deficiencies were identified:\n· The firm did not determine whether the expectations for the three types of revenue used in these analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test three of these types of revenue included analytical procedures. The following deficiencies were identified:\n· The firm did not determine whether the expectations for the three types of revenue used in these analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "20", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test three of these types of revenue included analytical procedures. The following deficiencies were identified:\n· The threshold that the firm established to investigate differences for two types of revenue was too high to identify misstatements that could be material, either individually or in the aggregate. (AS 2305.20)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test three of these types of revenue included analytical procedures. The following deficiencies were identified:\n· The firm identified a difference in excess of the firm’s established threshold for the third type of revenue but did not evaluate this difference, beyond inquiry of management. (AS 2305.21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test three of these types of revenue included analytical procedures. The following deficiencies were identified:\n· The firm used issuer-produced information to develop its expectation of one of these types of revenue but did not test, or in the alternative, test any controls over, the accuracy of this information. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test a fifth type of revenue. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test a fifth type of revenue. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to test the deferred revenue at year end. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain permanent and temporary differences used in calculating the income tax provision, beyond vouching these amounts to issuer-prepared schedules. (AS 2301.08 and.11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test certain permanent and temporary differences used in calculating the income tax provision, beyond vouching these amounts to issuer-prepared schedules. (AS 2301.08 and.11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "237", "Firm Names": "Brown Armstrong Accountancy Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for purposes of identifying and selecting journal entries for testing. The firm did not perform procedures to determine whether any journal entries met one of its fraud criteria. In addition, the firm obtained a listing of journal entries that met certain of the criteria. The firm did not perform sufficient procedures to test the journal entries in this listing, because it limited its procedures to certain entries, without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· The firm selected for testing a control over change management but did not perform procedures to determine whether the population of changes from which it made its selections for testing represented the complete population of changes made to this system. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· The firm selected for testing a control over change management but did not perform procedures to determine whether the population of changes from which it made its selections for testing represented the complete population of changes made to this system. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· The firm selected for testing certain IT application controls and IT-dependent manual controls over revenue and accounts receivable. The firm’s approach to testing these controls depended on effective ITGCs, including controls over change management. As a result of the deficiency in the firm’s testing of the control discussed above, the firm’s testing of these IT application controls and IT-dependent manual controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· The firm selected for testing certain IT application controls and IT-dependent manual controls over revenue and accounts receivable. The firm’s approach to testing these controls depended on effective ITGCs, including controls over change management. As a result of the deficiency in the firm’s testing of the control discussed above, the firm’s testing of these IT application controls and IT-dependent manual controls was not sufficient. (AS 2301.18)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm relied on certain information technology general controls (ITGCs) in its substantive approach to testing revenue and accounts receivable. The following deficiencies were identified:\n· As a result of the firm’s control testing deficiencies, the sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1390", "Firm Names": "Doane Grant Thornton LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for purposes of identifying and selecting journal entries for testing. In identifying journal entries that met the criteria, the firm did not perform sufficient procedures because certain journal entries that met its criteria were not identified by the firm. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for and disclosures related to goodwill and certain intangible assets were in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the issuer met the revenue recognition criteria prior to recognizing revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity-Related Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer had a reasonable basis for the significant assumptions used to estimate the fair value of the issuer’s common stock issued in various share-based transactions, beyond obtaining and reading certain issuer-prepared documents. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2807", "Firm Names": "Bansal & Co LLP", "Inspection Year": "2024", "Country": "India", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Audit Evidence", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor’s report. Specifically, the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented, (2) objectives of the procedures were achieved, and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Audit Evidence", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "5", "Description in the Firm's Inspection Report": "The firm did not complete all necessary procedures and obtain sufficient evidence to support the representations in the auditor’s report. Specifically, the firm did not review the work of engagement team members to evaluate whether the (1) work was performed and documented, (2) objectives of the procedures were achieved, and (3) results of the procedures performed supported the conclusions reached. (AS 1105.04; AS 1201.05)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to debt. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer’s omission of certain required disclosures related to debt. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the issuer’s accounting for debt was in conformity with certain requirements of GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test an accounting estimate in a significant account. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· The sample size the firm used to perform these substantive procedures was too small to provide sufficient appropriate audit evidence because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· For the transactions selected for testing, the firm did not perform any procedures to evaluate the terms and conditions of the issuer’s contracts with these customers to determine if the revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample to test revenue transactions. The following deficiencies were identified:\n· For the transactions selected for testing, the firm did not perform any procedures to evaluate the terms and conditions of the issuer’s contracts with these customers to determine if the revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6580", "Firm Names": "GreenGrowth CPAs", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not perform procedures to identify and test the journal entries that met certain of its fraud criteria. In addition, the firm obtained a listing of journal entries and used it to identify journal entries that met certain other of its fraud criteria. The firm did not perform sufficient substantive procedures to test the journal entries that met this other criteria, because it (i) limited its procedures to certain journal entries, without having an appropriate rationale for limiting its testing to those journal entries and (ii) did not examine the underlying support for those entries it selected for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business units. In determining the extent to which audit procedures over revenue should be performed at certain business units, the firm did not evaluate whether (1) specific risks of material misstatement existed at these business units and (2) the risks of material misstatement the firm identified for the business units subject to more extensive audit procedures also applied to these business units such that, in combination, they presented a reasonable possibility of material misstatement. (AS 2101.11 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple business units. In determining the extent to which audit procedures over revenue should be performed at certain business units, the firm did not evaluate whether (1) specific risks of material misstatement existed at these business units and (2) the risks of material misstatement the firm identified for the business units subject to more extensive audit procedures also applied to these business units such that, in combination, they presented a reasonable possibility of material misstatement. (AS 2101.11 and .12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer or the company’s specialist that were used by the company’s specialist in determining the fair value for certain investments. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of the significant assumptions developed by the issuer or the company’s specialist that were used by the company’s specialist in determining the fair value for certain investments. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified:\n· The firm did not evaluate the relevance and reliability of certain data from sources external to the issuer that the company’s specialist used to determine the fair value for certain investments. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "B1", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified:\n· The firm did not perform, or arrange to have another auditor perform, auditing procedures to an investee’s unaudited financial statements that the company’s specialist used to determine the fair value of an investment. (AS 1105.B1 and .B3)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "B3", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to determine the fair value of certain investments. The following deficiencies were identified:\n· The firm did not perform, or arrange to have another auditor perform, auditing procedures to an investee’s unaudited financial statements that the company’s specialist used to determine the fair value of an investment. (AS 1105.B1 and .B3)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm used an external digital confirmation platform to confirm certain 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "For certain of the issuer’s business units, the firm did not identify and select journal entries and other adjustments for testing, without having an appropriate basis for excluding those business units. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the method used by the issuer to recognize estimated revenue was in conformity with certain requirements of FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer’s method to recognize revenue on a gross basis was appropriate because the firm did not evaluate certain indicators of net basis that existed. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate whether the issuer’s method to recognize revenue on a gross basis was appropriate because the firm did not evaluate certain indicators of net basis that existed. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer’s omission of certain disclosures related to revenue required by FASB ASC Topic 606. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm used an external digital confirmation platform to confirm certain cash but did not perform sufficient procedures to support its reliance on this digital platform’s ability to maintain control over the confirmation requests and responses, because its procedures were limited to obtaining an understanding of only certain aspects of this digital platform. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not evaluate the relevance of certain evidence it used in its assessment of the recoverability of amounts due from related parties. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not evaluate the relevance of certain evidence it used in its assessment of the recoverability of amounts due from related parties. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6723", "Firm Names": "JP Centurion & Partners PLT", "Inspection Year": "2024", "Country": "Malaysia", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not evaluate the presentation, as a current asset, of a portion of amounts due from a related party. (AS 2410.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate the appropriateness of the issuer’s revenue recognition policy for certain revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test a subset of this revenue because it limited its procedures to tracing certain transactions to cash receipts. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test another subset of revenue beyond reviewing a sales listing obtained from an external source. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not perform procedures to test the rights and obligations of these assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not evaluate the relevance and reliability of information it obtained from external sources and used to test these assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not evaluate the relevance and reliability of information it obtained from external sources and used to test these assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not perform any procedures to test the existence of certain of these assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not evaluate whether the issuer’s (1) accounting for certain of these assets and (2) presentation of certain other of these assets were appropriate. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the issuer’s determination that there were no indicators of impairment for certain of these assets at certain dates, because it did not evaluate whether the issuer had appropriately applied GAAP in identifying indicators of impairment. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not perform procedures to test activity reported in the statement of cash flows related to these assets, beyond tracing amounts to summarized account activity in the issuer’s general ledger. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not evaluate whether the method used by the issuer to develop an estimate of certain of these assets was in conformity with certain applicable GAAP requirements. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer reported several types of certain assets. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 820, Fair Value Measurement. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer satisfied its performance obligations prior to the recognition of revenue, because it limited its procedures to testing cash receipts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether the issuer satisfied its performance obligations prior to the recognition of revenue, because it limited its procedures to testing cash receipts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test sales discounts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test sales discounts. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm also did not perform procedures to test, or test any controls over, the completeness of certain information it used to test revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that certain of the issuer’s disclosures related to revenue were inaccurate. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate that certain of the issuer’s disclosures related to revenue were inaccurate. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer’s omission of certain disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain significant assumptions the issuer used to develop its valuation of certain significant accounts. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not evaluate whether the method used by the issuer to develop its estimate related to one of these significant accounts was in conformity with GAAP. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the valuation of another significant account. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate and test certain aspects of this significant account. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain information reported in the statement of cash flows, including an evaluation of evidence that indicated that the information reported was potentially inaccurate. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain information reported in the statement of cash flows, including an evaluation of evidence that indicated that the information reported was potentially inaccurate. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test certain information reported in the statement of cash flows, including an evaluation of evidence that indicated that the information reported was potentially inaccurate. (AS 2301.08 and .11; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6771", "Firm Names": "VICTOR MOKUOLU CPA PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm did not identify and test any controls over the unsatisfied performance obligations the issuer expected to be recognized as revenue within the next 12 months. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of unsatisfied performance obligations that it expected to be recognized as revenue beyond the next 12 months. The firm did not identify and test any controls over the accuracy and completeness of the report used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm performed a substantive analytical procedure to test this disclosure. The firm did not determine whether the expectation it used in this analytical procedure was based on\npredictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm performed a substantive analytical procedure to test this disclosure. The firm did not determine whether the expectation it used in this analytical procedure was based on\npredictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm established its threshold for investigating differences based on a level of control reliance that was not supported due to the above deficiencies in the firm’s testing of controls. As a result, the threshold that the firm used did not provide the desired level of assurance that misstatements that could have been material would be identified. (AS 2301.16, .18, and .37; AS 2305.20)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm established its threshold for investigating differences based on a level of control reliance that was not supported due to the above deficiencies in the firm’s testing of controls. As a result, the threshold that the firm used did not provide the desired level of assurance that misstatements that could have been material would be identified. (AS 2301.16, .18, and .37; AS 2305.20)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm established its threshold for investigating differences based on a level of control reliance that was not supported due to the above deficiencies in the firm’s testing of controls. As a result, the threshold that the firm used did not provide the desired level of assurance that misstatements that could have been material would be identified. (AS 2301.16, .18, and .37; AS 2305.20)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "20", "Description in the Firm's Inspection Report": "The issuer disclosed the amounts of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm established its threshold for investigating differences based on a level of control reliance that was not supported due to the above deficiencies in the firm’s testing of controls. As a result, the threshold that the firm used did not provide the desired level of assurance that misstatements that could have been material would be identified. (AS 2301.16, .18, and .37; AS 2305.20)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Pension Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "The firm sent a positive confirmation request to the custodian for certain pension plan assets, which was returned with exceptions. The firm did not evaluate the nature of these exceptions. (AS 2310.33)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "48", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review, for a sample of loans, of the loan risk ratings assigned to the loans. The firm identified deviations in the operation of this control but did not evaluate the effect of these deviations on the operating effectiveness of the control. (AS 2201.48)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review, for a sample of loans, of the loan risk ratings assigned to the loans. In its testing of the operating effectiveness of this control, the firm excluded certain loans from its testing population. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm’s substantive procedures to test the reasonableness of the assigned loan risk ratings for certain loans included making a selection of loans for testing. The firm identified differences in the assigned loan risk ratings but did not evaluate the effect of these differences on whether it had obtained sufficient appropriate audit evidence. Further, the firm did not perform any substantive procedures to test the loan risk ratings for the loans that were excluded from the firm’s control testing procedures discussed above. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The firm selected for testing controls that included the issuer’s reviews of these factors. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The firm selected for testing controls that included the issuer’s reviews of these factors. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The firm selected for testing a control that included the issuer’s review of the risk ratings for certain loans. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The firm selected for testing a control that included the issuer’s review of the risk ratings for certain loans. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer assigned each loan a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The firm selected for testing a control that included the issuer’s review of the risk ratings for certain loans. For this control and two other controls the firm selected for testing over the ACL, the firm did not identify and test any controls over the accuracy and completeness of certain loan information used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer disclosed the amount of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of this disclosure. The firm did not identify and test any controls over the accuracy and completeness of the issuer-prepared schedules related to this disclosure that were used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer disclosed the amount of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm used these issuer-prepared schedules in its substantive testing of this disclosure but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer disclosed the amount of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm did not identify and evaluate a misstatement in this required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer disclosed the amount of unsatisfied performance obligations. The following deficiencies were identified:\n· The firm did not identify and evaluate a misstatement in this required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of certain inventory. The firm did not identify and test any controls that addressed whether this inventory was counted with sufficient frequency in accordance with the issuer’s cycle-count policy. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not obtain sufficient appropriate audit evidence that the cycle-count procedures the issuer used for this inventory were sufficiently reliable to produce results substantially the same as those that would have been obtained by a count of all items each year. (AS 2510.11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged specialists to determine the fair value of certain leased assets using various data and assumptions. The following deficiencies were identified:\n· The firm did not perform procedures to (1) test the accuracy and completeness of issuer-produced data used by the company’s specialists and (2) evaluate the relevance and reliability of external information used by one of the company’s specialists. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged specialists to determine the fair value of certain leased assets using various data and assumptions. The following deficiencies were identified:\n· The firm did not evaluate the reasonableness of significant assumptions used by the company’s specialists. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these operating results and cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of excluding these costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these operating results and cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of excluding these costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these operating results and cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of excluding these costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reviews of these operating results and cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of excluding these costs. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm used these operating results in its substantive procedures to evaluate whether any impairment indicators existed for these assets. The firm did not evaluate whether these excluded costs were directly associated with the identified asset groups. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm used these operating results in its substantive procedures to evaluate whether any impairment indicators existed for these assets. The firm did not evaluate whether these excluded costs were directly associated with the identified asset groups. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm’s approach for substantively testing the recoverability of certain of these assets was to test the issuer’s process. The firm did not evaluate whether the issuer’s method to determine the recoverability of these assets using cash-flow forecasts that excluded these costs was in conformity with FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used (1) store-level operating results to evaluate whether any impairment indicators existed for its long-lived assets, including lease right-of-use assets, and (2) store-level cash-flow forecasts to evaluate the recoverability of certain of these assets. The issuer excluded certain costs from these analyses. The following deficiencies were identified:\n· The firm’s approach for substantively testing the recoverability of certain of these assets was to test the issuer’s process. The firm did not evaluate whether the issuer’s method to determine the recoverability of these assets using cash-flow forecasts that excluded these costs was in conformity with FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded available-for-sale securities at fair value. The firm selected for testing a control that included comparing recorded prices from an external service provider to prices determined by the control owner. The firm did not evaluate the specific review procedures that the control owner performed to (1) determine the comparative prices and (2) to identify items for follow-up. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded available-for-sale securities at fair value. The firm selected for testing a control that included comparing recorded prices from an external service provider to prices determined by the control owner. The firm did not evaluate the specific review procedures that the control owner performed to (1) determine the comparative prices and (2) to identify items for follow-up. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "34", "Firm Names": "Deloitte & Touche LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate the issuer’s presentation of certain assets as current assets because it did not evaluate, beyond inquiring of management, the issuer’s intent to consume all of these assets within one year from the balance sheet date. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing a control over the segregation of duties related to the ability to develop and implement changes to certain of these IT systems. The firm did not test whether users with the ability to implement code changes also had the ability to develop those changes. Further, the firm did not test whether the ability to implement configuration changes was appropriately restricted to authorized users. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing a control over the segregation of duties related to the ability to develop and implement changes to certain of these IT systems. The firm did not test whether users with the ability to implement code changes also had the ability to develop those changes. Further, the firm did not test whether the ability to implement configuration changes was appropriately restricted to authorized users. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing a control over the segregation of duties related to the ability to develop and implement changes to certain of these IT systems. The firm did not test whether users with the ability to implement code changes also had the ability to develop those changes. Further, the firm did not test whether the ability to implement configuration changes was appropriately restricted to authorized users. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing a control over the segregation of duties related to the ability to develop and implement changes to certain of these IT systems. The firm did not test whether users with the ability to implement code changes also had the ability to develop those changes. Further, the firm did not test whether the ability to implement configuration changes was appropriately restricted to authorized users. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. In its testing of the operating effectiveness of certain of these controls, the firm excluded certain types of changes from its testing population. (AS 2201.44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. In its testing of the operating effectiveness of certain of these controls, the firm excluded certain types of changes from its testing population. (AS 2201.44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. For certain other of these controls, the firm did not test, or test any controls over, the completeness of the population of items from which it selected its sample for testing. (AS 1105.10)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls that consisted of the issuer’s testing and approval of system changes prior to implementation into the production environment. For certain other of these controls, the firm did not test, or test any controls over, the completeness of the population of items from which it selected its sample for testing. (AS 1105.10)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls over the issuer’s monitoring of system changes. The firm did not identify and test any controls over the accuracy and completeness of certain reports that the issuer used in the operation of these controls. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and the related deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\n·The firm selected for testing controls over the issuer’s monitoring of system changes. The firm did not identify and test any controls over the accuracy and completeness of certain reports that the issuer used in the operation of these controls. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the transfer of data between certain of the issuer’s revenue systems and the general ledger. For the first control, the firm did not test the configuration or programming of certain automated aspects of the control or perform other procedures to test this control that would have provided sufficient appropriate audit evidence that these automated aspects of the control were designed and operating effectively. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the transfer of data between certain of the issuer’s revenue systems and the general ledger. For the first control, the firm did not test the configuration or programming of certain automated aspects of the control or perform other procedures to test this control that would have provided sufficient appropriate audit evidence that these automated aspects of the control were designed and operating effectively. (AS 2201.42 and .44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the transfer of data between certain of the issuer’s revenue systems and the general ledger. For the second control, the firm did not identify and test any controls over the accuracy and completeness of certain data that the control owner used in the operation of this control. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain business units that the firm subjected to more extensive audit procedures, the following deficiencies were identified:\nThe firm selected for testing two controls that consisted of the issuer’s (1) identification of matters at its business units that could affect revenue recognition and (2) review of certain new and modified contracts for appropriate revenue recognition. The issuer used the matters identified in the first control as the population of contracts to be reviewed in the second control. The firm did not evaluate whether the first control was designed to address whether a complete population of these new and modified contracts was identified for review in the second control. (AS 2201.42)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain business units that the firm subjected to more extensive audit procedures, the following deficiencies were identified:\nThe firm selected for testing two controls that consisted of the issuer’s (1) identification of matters at its business units that could affect revenue recognition and (2) review of certain new and modified contracts for appropriate revenue recognition. The issuer used the matters identified in the first control as the population of contracts to be reviewed in the second control. The firm did not evaluate whether the first control was designed to address whether a complete population of these new and modified contracts was identified for review in the second control. (AS 2201.42)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the relative standalone selling prices. The relative standalone selling prices were determined based, in part, on the issuer’s categorization of its product offerings and pricing discounts it offered its customers. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s categorization of its product offerings and pricing discounts that were used to determine the standalone selling prices. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the relative standalone selling prices. The relative standalone selling prices were determined based, in part, on the issuer’s categorization of its product offerings and pricing discounts it offered its customers. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review and approval of the selling price data used to determine the standalone selling prices. The firm did not evaluate the specific review procedures that the control owners performed to evaluate exceptions identified for certain items that were selected for testing. (AS 2201.44)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the relative standalone selling prices. The relative standalone selling prices were determined based, in part, on the issuer’s categorization of its product offerings and pricing discounts it offered its customers. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review and approval of the selling price data used to determine the standalone selling prices. The firm did not identify and test any controls over the accuracy and completeness of a system-generated report that the control owners used in the operation of this control. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the automated recognition of certain revenue when electronic delivery occurred. The firm did not identify and test any controls over the accuracy and completeness of the electronic delivery dates used in the operation of this control. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over revenue, including IT controls, and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses in a revision to its report on ICFR, and the firm revised and reissued its report on the effectiveness of the issuer’s ICFR to include these additional material weaknesses." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the completeness of certain reports the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the completeness of certain reports the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the completeness of certain reports the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures over revenue, deferred revenue, and accounts receivable, as follows:\n· The sample sizes the firm used in certain of its substantive procedures were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s reconciliation of the business unit-level financial data to its consolidated general ledger. The firm did not identify and test any controls over the accuracy and completeness of the business unit-level data that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s reconciliation of the business unit-level financial data to its consolidated general ledger. The firm did not identify and test any controls over the accuracy and completeness of the business unit-level data that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm did not perform any substantive procedures to test revenue and deferred revenue for these business units. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to revenue and deferred revenue at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm did not perform any substantive procedures to test revenue and deferred revenue for these business units. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts with customers that included either standard or nonstandard terms. Certain contracts included an estimate of variable consideration in the transaction price. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s identification and evaluation of contracts with nonstandard terms. The firm did not identify and test any controls over the completeness of certain information that the control owners used in the operation of these controls. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its accounting for this revenue 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over revenue 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 and reissued its report on the effectiveness of the issuer’s ICFR to include this additional material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from contracts with customers that included either standard or nonstandard terms. Certain contracts included an estimate of variable consideration in the transaction price. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s accounting for variable consideration included in contracts with standard terms. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its accounting for this revenue 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over revenue 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 and reissued its report on the effectiveness of the issuer’s ICFR to include this additional material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer received a one-time payment in connection with a contract modification that it recognized as revenue. The firm did not identify and evaluate that the issuer’s accounting for this revenue was not in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30)\nIn connection with our review, the issuer reevaluated its accounting for this revenue 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 revised and reissued its report on the financial statements. The issuer also reevaluated its controls over revenue 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 and reissued its report on the effectiveness of the issuer’s ICFR to include this additional material weakness." }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing certain IT-dependent manual controls over the data used to develop and record these insurance-related liabilities. The firm did not test the configuration or programming of certain queries that the issuer used to generate data used in the operation of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing certain IT-dependent manual controls over the data used to develop and record these insurance-related liabilities. The firm did not test the configuration or programming of certain queries that the issuer used to generate data used in the operation of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s (1) reviews of the actuarial valuation methodologies, assumptions, and models and (2) recalculations of the insurance reserves for these products and review of these recalculations. The firm did not identify and test any controls over the accuracy and completeness of certain data that the control owners used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s (1) reviews of the actuarial valuation methodologies, assumptions, and models and (2) recalculations of the insurance reserves for these products and review of these recalculations. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain of these reserve recalculations. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s (1) reviews of the actuarial valuation methodologies, assumptions, and models and (2) recalculations of the insurance reserves for these products and review of these recalculations. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain of these reserve recalculations. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm did not test, or sufficiently test controls over, the accuracy and completeness of certain issuer-produced data that the company’s specialists used to determine these actuarial valuations. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used company-employed specialists to perform actuarial valuations of its insurance-related assets and liabilities, including insurance reserves. With respect to the insurance-related liabilities recorded for certain insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s comparisons and reviews of the current-period insurance reserves and related trends to the prior-period amounts. In evaluating the design of these controls, the firm did not evaluate whether the thresholds that the control owners used to identify items for investigation were sufficiently precise to detect material misstatements. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reconciliations of loss experience data to its actuarial valuations, which included the issuer’s use of tools to transfer data and perform calculations. The firm did not sufficiently test the control attributes designed to address the accuracy of data transferred into these tools because the firm did not test whether these control attributes were designed to address and/or operated as designed for each relevant processing alternative. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reconciliations of loss experience data to its actuarial valuations, which included the issuer’s use of tools to transfer data and perform calculations. The firm did not sufficiently test the control attributes designed to address the accuracy of data transferred into these tools because the firm did not test whether these control attributes were designed to address and/or operated as designed for each relevant processing alternative. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s reconciliations of loss experience data to its actuarial valuations, which included the issuer’s use of tools to transfer data and perform calculations. The firm did not identify and test any controls over the accuracy of the computations performed within these tools. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the actuarial valuation methodologies and assumptions. The firm did not identify and test any controls over the accuracy and completeness of certain data that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm did not test, or test any controls over, the accuracy and/or completeness of certain issuer-produced data that the company’s specialists used to determine these actuarial valuations. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s (1) recalculations of the insurance reserves for these products and review of these recalculations and (2) comparisons and reviews of the current-period insurance reserves and related trends to the prior-period amounts. The firm did not evaluate the specific review procedures that the control owners performed to investigate identified variances and determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s (1) recalculations of the insurance reserves for these products and review of these recalculations and (2) comparisons and reviews of the current-period insurance reserves and related trends to the prior-period amounts. The firm did not evaluate the specific review procedures that the control owners performed to investigate identified variances and determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Assets and Liabilities, Including Insurance Reserves", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to the insurance-related assets and liabilities recorded for certain other insurance products, the following deficiencies were identified:\n· The firm did not perform substantive procedures to test whether the issuer had appropriately calculated the gross amounts of these insurance-related assets and liabilities that were presented in the issuer’s financial statements. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "33", "Description in the Firm's Inspection Report": "The issuer used a service organization to perform recordkeeping and processing of transactions for certain investment securities. The firm sent positive confirmation requests to the custodians for these investment securities, but did not evaluate the nature of exceptions between the securities amounts included in the confirmation replies and the securities amounts that the issuer recorded. (AS 2310.33)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed its annual goodwill impairment assessment as of an interim date. The following deficiencies were identified:\n· The firm selected for testing controls that included the issuer’s assessment of triggering events between its annual assessment date and year end. The firm did not evaluate whether the controls were designed to address whether certain adverse market conditions and deteriorating financial results that arose before year end would have required an impairment test as of year end. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed its annual goodwill impairment assessment as of an interim date. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the issuer’s determination that it did not need to test goodwill for impairment between its annual assessment and year end because it did not identify that the issuer’s evaluation did not consider these adverse market conditions and deteriorating financial results that arose before year end. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s testing of certain automated controls over revenue at these business units was not sufficient because the firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s testing of certain automated controls over revenue at these business units was not sufficient because the firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "For the first business unit, the firm identified control deficiencies related to the issuer’s review of sales prices that were applied to certain customer orders and used to recognize revenue. The firm identified and tested various compensating controls that it believed would mitigate these deficiencies. The firm did not identify that these compensating controls did not address the risk of material misstatement related to the accuracy of these sales prices. (AS 2201.68)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For the second business unit, the firm selected for testing a control that consisted of the issuer’s comparison of sales prices invoiced to the customer order. For electronically received customer orders, the firm did not identify and test any controls over the accuracy of the data included in the customer orders that were used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For the second business unit, the firm selected for testing a control that consisted of the issuer’s comparison of sales prices invoiced to the customer order. For manually received customer orders, the firm did not assess the effect of the same individual both entering and reviewing the sales prices in evaluating the design of the control. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory held at one of its locations. The issuer used a service organization to host and maintain an IT system that was used in its cycle-count procedures. The firm did not obtain an understanding of, and test, any relevant controls at this service organization. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory held at one of its locations. The issuer used a service organization to host and maintain an IT system that was used in its cycle-count procedures. The firm did not obtain an understanding of, and test, any relevant controls at this service organization. (AS 2201.39 and .B19)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "Due to the deficiency discussed above, the firm did not obtain sufficient appropriate audit evidence that the cycle-count procedures that the issuer used for this inventory were sufficiently reliable to produce results substantially the same as those that would have been obtained by a count of all items each year. (AS 2510.11)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For one of the issuer’s business units, the firm selected for testing a control that consisted of the control owner’s review of a selection of journal entries for appropriateness. When evaluating the design of this control, the firm did not evaluate the number of items the control owner reviewed to assess whether it was sufficient to address the risks of material misstatement. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based, in part, on forecasts of expected future sales, rebates, and chargebacks. The following deficiencies were identified:\n· The firm selected for testing various controls that included the issuer’s reviews of the significant assumptions used to develop these accruals. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the underlying forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based, in part, on forecasts of expected future sales, rebates, and chargebacks. The following deficiencies were identified:\n· The firm selected for testing various controls that included the issuer’s reviews of the significant assumptions used to develop these accruals. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the underlying forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based, in part, on forecasts of expected future sales, rebates, and chargebacks. The following deficiencies were identified:\n· The firm selected for testing various controls that included the issuer’s reviews of the significant assumptions used to develop these accruals. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data and reports used in the operation of two of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based, in part, on forecasts of expected future sales, rebates, and chargebacks. The following deficiencies were identified:\n· The firm’s approach for substantively testing accrued rebates and chargebacks was to test the issuer’s process. The firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumptions used to develop these accruals because the firm did not evaluate the reasonableness of the underlying forecasts. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recorded revenue net of customer rebates and chargebacks. The issuer estimated its accrued rebates and chargebacks using significant assumptions that were based, in part, on forecasts of expected future sales, rebates, and chargebacks. The following deficiencies were identified:\n· The firm used certain issuer-produced data and reports in its testing of accrued rebates and chargebacks but did not test, or test any controls over, the accuracy and completeness of these data and reports. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to revenue and related accounts, including accrued sales rebates and chargebacks. The firm selected for testing a control that included the issuer’s reviews of changes made to this IT system through administrative user access. The firm did not evaluate the specific review procedures that the control owners performed to assess whether users performed appropriate actions when granted this access. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to revenue and related accounts, including accrued sales rebates and chargebacks. The firm selected for testing a control that included the issuer’s reviews of changes made to this IT system through administrative user access. The firm did not evaluate the specific review procedures that the control owners performed to assess whether users performed appropriate actions when granted this access. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the above deficiency in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size that the firm used in certain of its substantive procedures to test accrued rebates was too small to provide sufficient appropriate evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s ITGC testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B21", "Description in the Firm's Inspection Report": "The issuer developed the quantitative reserve component of the ACL using a model that was maintained by a service organization. The following deficiencies were identified:\n· The firm obtained a service auditor’s report but did not evaluate whether this auditor’s report provided sufficient appropriate audit evidence because the firm did not assess certain controls that the service auditor tested and how those controls related to the issuer’s controls over the quantitative component of the ACL. (AS 2201.B21)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer developed the quantitative reserve component of the ACL using a model that was maintained by a service organization. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s ongoing assessment and monitoring of the predictability and effectiveness of this ACL model. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the control owner’s reperformance of certain ACL calculations. The number of instances that the firm selected for testing this control did not provide sufficient appropriate audit evidence given the frequency with which this control operated. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer determined the qualitative reserve component of the ACL using various qualitative factors. The firm’s approach for substantively testing the ACL was to test the issuer’s process. The firm did not evaluate whether the issuer had a reasonable basis for the significant assumptions that the issuer used to develop certain of these qualitative factors. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The issuer assigned certain acquired loans a risk rating, which was a significant assumption in estimating the fair value of the acquired loans. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the credit quality of these acquired loans, including the assigned loan risk ratings. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the assigned loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The issuer assigned certain acquired loans a risk rating, which was a significant assumption in estimating the fair value of the acquired loans. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the credit quality of these acquired loans, including the assigned loan risk ratings. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the assigned loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The issuer assigned certain acquired loans a risk rating, which was a significant assumption in estimating the fair value of the acquired loans. The following deficiencies were identified:\n· The firm’s approach for substantively testing the valuation of these acquired loans was to test the issuer’s process. The firm selected a sample of acquired loans for testing. The firm did not evaluate whether the issuer had a reasonable basis for the assigned loan risk ratings for these acquired loans. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to certain revenue and accounts receivable. The firm selected for testing controls that included the issuer’s reviews of changes made to this IT system through administrative user access. When testing the design and operating effectiveness of these controls, the firm did not evaluate (1) certain criteria that the control owners used to determine which types of changes would be subject to the issuer’s reviews and (2) whether the control owners’ review of only certain types of system changes and permissions was sufficient to address the risk that unauthorized changes were made. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to certain revenue and accounts receivable. The firm selected for testing controls that included the issuer’s reviews of changes made to this IT system through administrative user access. When testing the design and operating effectiveness of these controls, the firm did not evaluate (1) certain criteria that the control owners used to determine which types of changes would be subject to the issuer’s reviews and (2) whether the control owners’ review of only certain types of system changes and permissions was sufficient to address the risk that unauthorized changes were made. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to certain revenue and accounts receivable. The firm selected for testing controls that included the issuer’s reviews of changes made to this IT system through administrative user access. When testing the design and operating effectiveness of these controls, the firm did not evaluate (1) certain criteria that the control owners used to determine which types of changes would be subject to the issuer’s reviews and (2) whether the control owners’ review of only certain types of system changes and permissions was sufficient to address the risk that unauthorized changes were made. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an IT system to initiate, process, and record transactions related to certain revenue and accounts receivable. The firm selected for testing controls that included the issuer’s reviews of changes made to this IT system through administrative user access. When testing the design and operating effectiveness of these controls, the firm did not evaluate (1) certain criteria that the control owners used to determine which types of changes would be subject to the issuer’s reviews and (2) whether the control owners’ review of only certain types of system changes and permissions was sufficient to address the risk that unauthorized changes were made. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data or reports generated or maintained by this IT system. As a result of the above deficiency in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data or reports generated or maintained by this IT system. As a result of the above deficiency in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes that the firm used in certain of its substantive procedures to test this revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to (1) the deficiencies in the firm’s control testing discussed above and/or (2) the firm not taking into account that the controls it relied upon were not designed and operating effectively during the entire period of reliance. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control at one of the issuer’s locations that consisted of the issuer’s review of source documentation prior to processing customer invoices and credit memos. The firm did not test, or test any controls over, the completeness of the population of items from which it selected its samples for testing this control. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control at one of the issuer’s locations that consisted of the issuer’s review of source documentation prior to processing customer invoices and credit memos. The firm did not test, or test any controls over, the completeness of the population of items from which it selected its samples for testing this control. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm selected for testing a control at one of the issuer’s locations that consisted of the issuer’s review of source documentation prior to processing customer invoices and credit memos. The number of credit memos that the firm selected for testing did not provide sufficient appropriate evidence given the frequency with which the control operated. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm selected for testing a control at one of the issuer’s locations that consisted of the issuer’s review of source documentation prior to processing customer invoices and credit memos. The number of credit memos that the firm selected for testing did not provide sufficient appropriate evidence given the frequency with which the control operated. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system. As a result of the following audit deficiencies, the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system. As a result of the following audit deficiencies, the firm’s testing of these IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm did not identify and test any controls that addressed the risk that certain users could make unauthorized changes to the data in this system. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm did not identify and test any controls that addressed the risk that certain users could make unauthorized changes to the data in this system. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm selected for testing (1) an automated control over the transfer of data from the issuer’s source system into this IT system and (2) controls over the generation of the reports used in these IT-dependent manual controls. The firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm selected for testing (1) an automated control over the transfer of data from the issuer’s source system into this IT system and (2) controls over the generation of the reports used in these IT-dependent manual controls. The firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm selected for testing (1) an automated control over the transfer of data from the issuer’s source system into this IT system and (2) controls over the generation of the reports used in these IT-dependent manual controls. The firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used an IT system to retain certain data related to MSRs and loan servicing revenue. In its testing of controls over these accounts, the firm tested various IT-dependent manual controls that used reports generated by this IT system.\n· The firm selected for testing (1) an automated control over the transfer of data from the issuer’s source system into this IT system and (2) controls over the generation of the reports used in these IT-dependent manual controls. The firm did not test the configuration or programming of these controls or perform other procedures to test these controls that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test MSRs and loan servicing revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of forecasted sales that were used to estimate the valuation of certain inventory. The firm did not evaluate the specific review procedures that the control owners performed to assess the issuer’s ability to achieve these forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of forecasted sales that were used to estimate the valuation of certain inventory. The firm did not evaluate the specific review procedures that the control owners performed to assess the issuer’s ability to achieve these forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reconciliation of the inventory subledger to its general ledger and its review of this reconciliation. The firm did not evaluate the specific review procedures that the control owners performed to assess the appropriateness of certain inventory adjustments that the firm selected for testing that were included in this reconciliation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reconciliation of the inventory subledger to its general ledger and its review of this reconciliation. The firm did not evaluate the specific review procedures that the control owners performed to assess the appropriateness of certain inventory adjustments that the firm selected for testing that were included in this reconciliation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test these inventory adjustments consisted of selecting a sample of items for testing. The firm used issuer-produced quantity information in these substantive procedures but did not perform any procedures to test, or sufficiently test controls over, the accuracy and completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of potential indicators of impairment for its long-lived assets and certain investments. The firm did not evaluate whether the thresholds that the control owner used to identify certain impairment indicators were sufficiently precise to prevent or detect material misstatements. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of potential indicators of impairment for its long-lived assets and certain investments. The firm did not evaluate whether the thresholds that the control owner used to identify certain impairment indicators were sufficiently precise to prevent or detect material misstatements. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of potential indicators of impairment for its long-lived assets and certain investments. The firm did not identify and test any controls over the accuracy and/or completeness of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of potential indicators of impairment for its long-lived assets and certain investments. The firm did not identify and test any controls over the accuracy and/or completeness of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer performed a quantitative impairment assessment of certain long-lived assets and investments that had impairment indicators. The firm used certain issuer-produced data in its substantive testing of this impairment assessment but did not test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer performed a quantitative impairment assessment of certain long-lived assets and investments that had impairment indicators. The firm used certain issuer-produced data in its substantive testing of this impairment assessment but did not test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For another of the issuer’s long-lived assets, the firm did not evaluate the appropriateness of the issuer’s conclusion that an impairment assessment was not required even though an impairment indicator existed for this long-lived asset. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For another of the issuer’s long-lived assets, the firm did not evaluate the appropriateness of the issuer’s conclusion that an impairment assessment was not required even though an impairment indicator existed for this long-lived asset. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the first control, the firm did not evaluate the specific review procedures that the control owners performed to determine whether items that met the criteria for investigation were identified for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the first control, the firm did not evaluate the specific review procedures that the control owners performed to determine whether items that met the criteria for investigation were identified for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the first control, the firm did not evaluate the specific review procedures that the control owners performed to determine whether items that met the criteria for investigation were identified for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the first control, the firm did not evaluate the specific review procedures that the control owners performed to determine whether items that met the criteria for investigation were identified for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the second control, the firm did not identify and test any controls over the accuracy and completeness of certain reports that the control owners used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the second control, the firm did not identify and test any controls over the accuracy and completeness of certain reports that the control owners used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the second control, the firm did not test the aspects of this control that addressed the accuracy or completeness of certain other reports used in the operation of the control. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded transactions related to revenue and inventory at numerous business units. To address the risks of material misstatement related to revenue and inventory for certain of these business units, the firm selected entity-level controls for testing, including two controls that consisted of the issuer’s reviews of financial information. The following deficiencies were identified:\n· For the second control, the firm did not test the aspects of this control that addressed the accuracy or completeness of certain other reports used in the operation of the control. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed the goodwill area, and also identified the deficiency below.\nFor four of the issuer’s reporting units, the firm selected for testing controls that consisted of the issuer’s reviews of the forecasts and valuation model used in its goodwill impairment analysis, including the assumptions used. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed the goodwill area, and also identified the deficiency below.\nFor four of the issuer’s reporting units, the firm selected for testing controls that consisted of the issuer’s reviews of the forecasts and valuation model used in its goodwill impairment analysis, including the assumptions used. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the accounting for certain lease transactions. The firm did not identify and test any controls over the accuracy and completeness of a report used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe firm used issuer-prepared schedules in its substantive testing of the issuer’s (1) assessment of certain long-lived assets for possible impairment and (2) long-lived asset disclosures. The firm did not perform any procedures to test, or test any controls over, the accuracy of certain data included in these issuer-prepared schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe firm performed substantive procedures to test the accuracy of a schedule that the issuer used to prepare certain of its lease disclosures. The sample size the firm used in these substantive procedures was smaller than the one the firm determined necessary to provide sufficient appropriate audit evidence. Further, the firm did not perform any procedures to test, or test any controls over, the completeness of this schedule. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its asset groupings used in the evaluation of long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of the specific assets that were included in the asset groupings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its asset groupings used in the evaluation of long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owner performed to assess the appropriateness of the specific assets that were included in the asset groupings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer identified that events or changes in circumstances existed indicating that the carrying value of certain long-lived assets may not be recoverable. The firm did not evaluate whether these events or changes in circumstances indicated that the carrying amounts of certain other long-lived assets may not be recoverable. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s contracts provided for the reimbursement of costs for services performed on behalf of its customers, and the issuer did not recognize revenue from these services. The firm did not perform procedures to evaluate whether these services were part of the issuer’s performance obligation under its customer contracts that should have been recognized as revenue in conformity with FASB ASC Topic 606. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "P", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the control owner’s review of certain journal entries. The firm did not evaluate whether the design of this control was sufficient to address whether journal entries prepared and posted by the same individual were authorized and appropriate. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "Q", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used a service organization for recordkeeping and processing of transactions related to investment securities. The firm did not perform any procedures that addressed the accuracy of certain data from the service organization that was used to determine the classification of investment purchases and sales in the statement of cash flows. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm performed a substantive analytical procedure to test certain revenue deductions. The firm did not determine whether the expectation used in this substantive analytical procedure was based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "42", "Firm Names": "Ernst & Young LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm performed a substantive analytical procedure to test certain revenue deductions. The firm did not determine whether the expectation used in this substantive analytical procedure was based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer engaged a specialist to assist it in determining the fair value of the loans acquired and the deposits assumed in connection with the business combination. The firm selected for testing various controls over the acquired loans and assumed deposits data that were provided to and used by the company’s specialist. The firm did not identify and test any controls over the accuracy and completeness of certain of the data from the legacy systems that were used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe firm used certain loan data from the legacy systems in its testing of the ACL but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The firm selected for testing a control that consisted of the issuer’s review, for a sample of loans, of the loan risk ratings assigned to certain types of loans. The firm did not evaluate the criteria the control owners used to select loans for review. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s review of the ACL, including an assessment of this qualitative factor for reasonableness. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of this qualitative factor. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s review of the ACL, including an assessment of this qualitative factor for reasonableness. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of this qualitative factor. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm selected for testing controls that consisted of the issuer’s review of the ACL, including an assessment of this qualitative factor for reasonableness. The firm did not identify and test any controls over the accuracy and/or completeness of the appraisal and external data used to develop this factor. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative component of the ACL was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate the methods and certain significant assumptions used by the issuer. The firm did not sufficiently evaluate the reasonableness of these significant assumptions because it did not identify that the auditor-employed specialist’s procedures were limited to inquiring of management and reading an issuer-prepared memorandum. Further, the firm used a sample of appraisal reports prepared by the company’s specialists in its testing of these significant assumptions without performing any procedures with respect to its use of the work of the company’s specialists as audit evidence. (AS 1105.A1 - .A10, AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer determined the qualitative reserve component of the ACL using qualitative factors and developed one of these factors using various data, including appraisal data prepared by the company’s specialists and certain external data. The following deficiencies were identified:\n· The firm used the appraisal and external data in its substantive testing of the qualitative component of the ACL but did not perform any procedures to test, or test any controls over, the accuracy and/or completeness of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer used a manually prepared spreadsheet to compare the fair values recorded for its available-for-sale and held-to-maturity securities to prices obtained from various sources. The firm selected for testing controls over the review of this spreadsheet but, when evaluating the design of these controls, did not identify that the control owner did not perform any procedures that addressed whether the pricing information that was included in the spreadsheet was accurate and complete. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer disclosed the size, categories, and maturity date of certain of its deposit liabilities. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of these disclosures but did not identify and test any controls over the accuracy and completeness of the\ninformation from the issuer’s legacy systems that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deposit Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer completed a business combination where the issuer’s operations from before the transaction remained on the issuer’s existing information systems (“legacy systems”) and continued to be recorded in these systems separately from the other company’s operations.\nThe issuer disclosed the size, categories, and maturity date of certain of its deposit liabilities. The following deficiencies were identified:\n· The firm used this information in its substantive testing of these disclosures but did not perform any procedures to test, or test controls over, the accuracy and completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer reported loans receivable at two business units. The firm excluded from the scope of its audits the ACL related to one of these business units but did not evaluate whether the risks of material misstatement that the firm associated with the ACL subject to audit procedures also applied to the excluded ACL. (AS 2101.11 and .12; AS 2201.B10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer reported loans receivable at two business units. The firm excluded from the scope of its audits the ACL related to one of these business units but did not evaluate whether the risks of material misstatement that the firm associated with the ACL subject to audit procedures also applied to the excluded ACL. (AS 2101.11 and .12; AS 2201.B10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B10", "Description in the Firm's Inspection Report": "The issuer reported loans receivable at two business units. The firm excluded from the scope of its audits the ACL related to one of these business units but did not evaluate whether the risks of material misstatement that the firm associated with the ACL subject to audit procedures also applied to the excluded ACL. (AS 2101.11 and .12; AS 2201.B10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to the ACL subject to audit procedures:\n· The firm identified and tested controls that consisted of the issuer’s review of the quantitative component of the ACL but did not identify and test any controls over certain inputs the control owners used in the operation of those controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to the ACL subject to audit procedures:\n· The firm did not identify and test any controls over the qualitative component of the ACL. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "With respect to the ACL subject to audit procedures:\n· The firm’s approach for substantively testing the ACL was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions the issuer used to develop the quantitative component and any significant assumptions the issuer used to develop the qualitative component. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer sold certain loans receivable to external parties. The firm did not identify and evaluate that the issuer’s accounting for, and presentation and disclosure of, the gain on the sale of these loans was not in conformity with FASB ASC Topic 310, Receivables, and FASB ASC Subtopic 860-20, Transfers and Servicing – Sales of Financial Assets. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting and presentation of this sale of loans receivable and determined that an error existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer adjusted this accounting and presentation in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer sold certain loans receivable to external parties. The firm did not identify and evaluate that the issuer’s accounting for, and presentation and disclosure of, the gain on the sale of these loans was not in conformity with FASB ASC Topic 310, Receivables, and FASB ASC Subtopic 860-20, Transfers and Servicing – Sales of Financial Assets. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its accounting and presentation of this sale of loans receivable and determined that an error existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer adjusted this accounting and presentation in a subsequent filing." }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded certain investment securities at fair value based on cash-flow models and classified these securities as held-to-maturity (HTM). The following deficiencies were identified:\n· The firm selected for testing controls over the valuation of these securities, including the issuer’s review of its cash-flow models. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the values determined by these models. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded certain investment securities at fair value based on cash-flow models and classified these securities as held-to-maturity (HTM). The following deficiencies were identified:\n· The firm selected for testing controls over the valuation of these securities, including the issuer’s review of its cash-flow models. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the values determined by these models. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer recorded certain investment securities at fair value based on cash-flow models and classified these securities as held-to-maturity (HTM). The following deficiencies were identified:\n· The firm did not perform any substantive procedures to test the valuation of these securities. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recorded certain investment securities at fair value based on cash-flow models and classified these securities as held-to-maturity (HTM). The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether the issuer’s classification of these securities as HTM was appropriate. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded certain investment securities at fair value based on cash-flow models and classified these securities as held-to-maturity (HTM). The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate whether the issuer’s classification of these securities as HTM was appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls (ITGCs), the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures the control owner performed to determine whether user access to the production environment that had been previously granted continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures the control owner performed to determine whether user access to the production environment that had been previously granted continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures the control owner performed to determine whether user access to the production environment that had been previously granted continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not evaluate the specific review procedures the control owner performed to determine whether user access to the production environment that had been previously granted continued to be appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· To test certain other change management controls, the firm selected changes from the issuer’s change management tool but did not test, or test any controls over, the completeness of the population of changes from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to change management:\nThe issuer had various change management processes for these IT systems, including the use of a tool to manage and migrate changes into the production environment. The firm selected for testing controls over change management for certain systems, including a control that consisted of the issuer’s periodic review of access to the production environment. The following deficiencies were identified:\n· To test certain other change management controls, the firm selected changes from the issuer’s change management tool but did not test, or test any controls over, the completeness of the population of changes from which it selected its samples for testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not evaluate the specific review procedures the control owner performed to determine whether access was appropriately granted for the instances selected for testing. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not evaluate the specific review procedures the control owner performed to determine whether access was appropriately granted for the instances selected for testing. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not evaluate the specific review procedures the control owner performed to determine whether access was appropriately granted for the instances selected for testing. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not evaluate the specific review procedures the control owner performed to determine whether access was appropriately granted for the instances selected for testing. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to revenue and deferred revenue. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems.\nWith respect to user access:\n· The firm selected for testing a control over user access for certain systems. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies , the firm did not perform sufficient substantive procedures to test certain revenue and deferred revenue because it did not test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data or reports the firm used in its substantive testing, including substantive analytical procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies , the firm did not perform sufficient substantive procedures to test certain revenue and deferred revenue because it did not test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data or reports the firm used in its substantive testing, including substantive analytical procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies , the firm did not perform sufficient substantive procedures to test certain revenue and deferred revenue because it did not test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data or reports the firm used in its substantive testing, including substantive analytical procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies , the firm did not perform sufficient substantive procedures to test certain revenue and deferred revenue because it did not test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data or reports the firm used in its substantive testing, including substantive analytical procedures. (AS 1105.10; AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The firm did not identify and test any controls over the reliability of the information provided by the external party. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "At two of the issuer’s business units, the issuer recognized certain revenue over time based on information that was provided by an external party. The following deficiencies were identified:\n· The sample sizes the firm used in its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "At certain other business units, the following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether the performance obligations had been satisfied before revenue was recognized. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "At certain other business units, the following deficiencies were identified:\n· The firm did not perform substantive procedures, beyond observing the issuer’s processing of one revenue transaction, to evaluate whether the performance obligations had been satisfied before revenue was recognized. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions, including future production volumes. The company’s specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company’s specialists to develop the future production volumes. The following deficiencies were identified:\n· The firm did not identify and test any controls over the reliability of the historical production data used by the company’s specialists. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions, including future production volumes. The company’s specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company’s specialists to develop the future production volumes. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant non-financial assumptions that were developed and used by the company’s specialists. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions, including future production volumes. The company’s specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company’s specialists to develop the future production volumes. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of the future production volumes assumption but did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant non-financial assumptions that were developed and used by the company’s specialists. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions, including future production volumes. The company’s specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company’s specialists to develop the future production volumes. The following deficiencies were identified:\n· The firm did not evaluate the reliability of the historical production data used by the company’s specialists. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The acquired assets primarily consisted of oil and gas properties that had oil and gas reserves assigned. The issuer used company-employed specialists to determine the fair value of the acquired oil and gas properties based on discounted cash flows that they developed using various assumptions, including future production volumes. The company’s specialists used historical production data produced by the acquired business and certain other non-financial assumptions developed by the company’s specialists to develop the future production volumes. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of certain significant non-financial assumptions that were developed and used by the company’s specialists, beyond comparing the assumptions for the first year of the discounted cash flows for a selection of acquired properties to the historical production data of the acquired business and the issuer’s other properties. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer’s policy was to group its property, plant, and equipment as a single asset group when evaluating its long-lived assets for possible impairment because the cash flows were interdependent. The following deficiencies were identified:\n· The firm selected for testing a control over the impairment of property, plant, and equipment, which included the determination of its asset grouping. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the issuer’s use of a single asset group was in conformity with FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer’s policy was to group its property, plant, and equipment as a single asset group when evaluating its long-lived assets for possible impairment because the cash flows were interdependent. The following deficiencies were identified:\n· The firm selected for testing a control over the impairment of property, plant, and equipment, which included the determination of its asset grouping. The firm did not evaluate the specific review procedures that the control owner performed to assess whether the issuer’s use of a single asset group was in conformity with FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer’s policy was to group its property, plant, and equipment as a single asset group when evaluating its long-lived assets for possible impairment because the cash flows were interdependent. The following deficiencies were identified:\n· The firm did not perform substantive procedures, beyond reading an issuer-prepared memorandum, to evaluate whether the issuer’s use of a single asset group was in conformity with FASB ASC Topic 360. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer held investments in multiple unconsolidated entities, including certain entities that were managed by the issuer. The following deficiencies were identified:\n· The firm selected for testing a control over the issuer’s disclosure of these investments. The firm did not identify and test any controls over the accuracy and completeness of an issuer-prepared schedule that the control owner used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer held investments in multiple unconsolidated entities, including certain entities that were managed by the issuer. The following deficiencies were identified:\n· The firm selected for testing a control over the valuation of the investments in unconsolidated entities managed by the issuer. The firm did not identify and test any controls over the accuracy and completeness of the unconsolidated entities’ financial statements that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer held investments in multiple unconsolidated entities, including certain entities that were managed by the issuer. The following deficiencies were identified:\n· The firm used the unconsolidated entities’ financial statements and the issuer-prepared schedule in its substantive testing of these investments but did not perform any procedures to test, or test any controls over, the accuracy and completeness of this information. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time from contracts for which it had an enforceable right to payment for inventory that did not have an alternative use to the issuer. The issuer’s IT system for this revenue was configured to recognize revenue upon shipment, and the issuer recorded manual adjustments to recognize revenue at period end based on the progress it made to manufacture goods in inventory that had not been shipped. The firm selected for testing 1) an automated control that included the designation of sales orders in the system as “on hold” until the issuer completed a review of each sales order prior to shipment and 2) the control related to the issuer’s review of each sales order with the “on hold” designation in the system to ensure it was associated with a valid contract. The following deficiencies were identified:\n· For the automated control, the firm did not test the aspect that addressed whether all types of sales orders received this “on hold” designation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time from contracts for which it had an enforceable right to payment for inventory that did not have an alternative use to the issuer. The issuer’s IT system for this revenue was configured to recognize revenue upon shipment, and the issuer recorded manual adjustments to recognize revenue at period end based on the progress it made to manufacture goods in inventory that had not been shipped. The firm selected for testing 1) an automated control that included the designation of sales orders in the system as “on hold” until the issuer completed a review of each sales order prior to shipment and 2) the control related to the issuer’s review of each sales order with the “on hold” designation in the system to ensure it was associated with a valid contract. The following deficiencies were identified:\n· For the automated control, the firm did not test the aspect that addressed whether all types of sales orders received this “on hold” designation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time from contracts for which it had an enforceable right to payment for inventory that did not have an alternative use to the issuer. The issuer’s IT system for this revenue was configured to recognize revenue upon shipment, and the issuer recorded manual adjustments to recognize revenue at period end based on the progress it made to manufacture goods in inventory that had not been shipped. The firm selected for testing 1) an automated control that included the designation of sales orders in the system as “on hold” until the issuer completed a review of each sales order prior to shipment and 2) the control related to the issuer’s review of each sales order with the “on hold” designation in the system to ensure it was associated with a valid contract. The following deficiencies were identified:\n· For the sales order review control, the firm did not perform sufficient procedures to test the completeness of the population of items from which it selected its samples because it did not perform any procedures over the completeness of the population of sales orders associated with goods in inventory that the issuer had begun to manufacture. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue over time from contracts for which it had an enforceable right to payment for inventory that did not have an alternative use to the issuer. The issuer’s IT system for this revenue was configured to recognize revenue upon shipment, and the issuer recorded manual adjustments to recognize revenue at period end based on the progress it made to manufacture goods in inventory that had not been shipped. The firm selected for testing 1) an automated control that included the designation of sales orders in the system as “on hold” until the issuer completed a review of each sales order prior to shipment and 2) the control related to the issuer’s review of each sales order with the “on hold” designation in the system to ensure it was associated with a valid contract. The following deficiencies were identified:\n· The firm identified a control deficiency related to the lack of a requirement for the sales order review control to be performed before the issuer began to manufacture the inventory. In determining whether the deficiency represented a material weakness, the firm did not sufficiently evaluate the severity of this deficiency because (1) its procedures to evaluate the magnitude of the potential misstatement were limited to determining the total inventory amount that would represent a material misstatement and (2) the firm did not perform procedures to evaluate whether there was a reasonable possibility that the issuer’s controls would fail to prevent or detect a misstatement beyond concluding that the possibility of that type of misstatement would be remote without performing procedures to support that conclusion. (AS 2201.62)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of its reporting units. The firm selected for testing controls that consisted of the issuer’s determination of an expected range of reasonable outcomes for certain assumptions and comparison of those expected ranges to the assumptions determined by the company specialist. The firm did not evaluate, beyond inquiry, the procedures the control owner performed to determine the expected ranges. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist it in determining the fair value of its reporting units. The firm selected for testing controls that consisted of the issuer’s determination of an expected range of reasonable outcomes for certain assumptions and comparison of those expected ranges to the assumptions determined by the company specialist. The firm did not evaluate, beyond inquiry, the procedures the control owner performed to determine the expected ranges. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing the issuer’s control over the configuration of a system-generated report used in the preparation of its statement of cash flows. The firm did not evaluate the specific review procedures that the control owners performed to assess the configuration of this report. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing the issuer’s control over the configuration of a system-generated report used in the preparation of its statement of cash flows. The firm did not evaluate the specific review procedures that the control owners performed to assess the configuration of this report. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm selected for testing controls that consisted of the issuer’s review of the ACL, including a committee's reviews of certain assumptions used to estimate the qualitative component. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm selected for testing controls that consisted of the issuer’s review of the ACL, including a committee's reviews of certain assumptions used to estimate the qualitative component. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing controls that consisted of the issuer’s validation of the models it used to estimate the quantitative component of the ACL for loans and leases collectively evaluated for impairment. The issuer’s validation included a comparison of the modeled results to the actual results that identified two types of errors and, by design, assessed one of these types of errors. In evaluating the design of these controls, the firm did not evaluate the effect of the issuer not assessing one type of error on the controls’ ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based, in part, on transaction data provided by an external service provider. The firm did not identify and test any controls that addressed the reliability of the majority of these data. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "185", "Firm Names": "KPMG LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to determine whether the issuer’s presentation of a certain tax receivable as a current asset was appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The estimated standalone selling prices were based on an expected cost plus a margin approach that involved significant assumptions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond reading an issuer-prepared analysis, to assess whether the services promised in the issuer’s contracts were distinct and should have been accounted for as separate performance obligations. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for these arrangements and concluded that misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K disclosing that its previously issued financial statements should no longer be relied upon and that it plans on restating its financial statements to correct these misstatements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The estimated standalone selling prices were based on an expected cost plus a margin approach that involved significant assumptions. The following deficiencies were identified:\n· The firm did not perform procedures, beyond reading an issuer-prepared analysis, to assess whether the services promised in the issuer’s contracts were distinct and should have been accounted for as separate performance obligations. (AS 2301.08 and .13)\nIn connection with our review, the issuer reevaluated its accounting for these arrangements and concluded that misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K disclosing that its previously issued financial statements should no longer be relied upon and that it plans on restating its financial statements to correct these misstatements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The estimated standalone selling prices were based on an expected cost plus a margin approach that involved significant assumptions. The following deficiencies were identified:\n· For certain contracts, the issuer recognized revenue over time using an output method to measure its progress toward completion of its performance obligations. The firm did not evaluate whether this method was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2501.10)\nIn connection with our review, the issuer reevaluated its accounting for these arrangements and concluded that misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K disclosing that its previously issued financial statements should no longer be relied upon and that it plans on restating its financial statements to correct these misstatements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The estimated standalone selling prices were based on an expected cost plus a margin approach that involved significant assumptions. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the reasonableness of the expected costs of satisfying the performance obligations and related margins. (AS 2501.16)\nIn connection with our review, the issuer reevaluated its accounting for these arrangements and concluded that misstatements existed that had not been previously identified. The issuer subsequently filed a Form 8-K disclosing that its previously issued financial statements should no longer be relied upon and that it plans on restating its financial statements to correct these misstatements." }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on the issuer’s estimate of the number of customers enrolled in plans under which the issuer provided services. The firm did not sufficiently evaluate whether the issuer had a reasonable basis for this significant assumption because it did not evaluate the relevance of certain historical customer data that the issuer adjusted and used to develop this significant assumption. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on the issuer’s estimate of the number of customers enrolled in plans under which the issuer provided services. The firm did not sufficiently evaluate whether the issuer had a reasonable basis for this significant assumption because it did not evaluate the relevance of certain historical customer data that the issuer adjusted and used to develop this significant assumption. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on the issuer’s estimate of the number of customers enrolled in plans under which the issuer provided services. The firm did not sufficiently evaluate whether the issuer had a reasonable basis for this significant assumption because it did not evaluate the relevance of certain historical customer data that the issuer adjusted and used to develop this significant assumption. (AS 1105.04 and .06; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether certain payments that the issuer recognized as revenue met the criteria for revenue recognition set forth in FASB ASC Topic 606. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain accounts receivable. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate various misstatements in the issuer’s disclosures related to accounts receivable and other liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate various misstatements in the issuer’s disclosures related to accounts receivable and other liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate various misstatements in the issuer’s disclosures related to accounts receivable and other liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate various misstatements in the issuer’s disclosures related to accounts receivable and other liabilities. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed that it presented its accounts receivable net of certain unpaid costs. The firm did not perform any substantive procedures to evaluate whether this presentation was in conformity with FASB ASC Topic 210, Balance Sheet. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed that it presented its accounts receivable net of certain unpaid costs. The firm did not perform any substantive procedures to evaluate whether this presentation was in conformity with FASB ASC Topic 210, Balance Sheet. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s allowance for credit impairment for certain investment securities. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the allowance for credit impairment for these investment securities. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the issuer’s ACL for certain loans. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the ACL for these loans. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer disclosed the estimated fair values for certain loans measured at amortized cost. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of this disclosure but did not identify and test any controls over the accuracy and completeness of the issuer-prepared schedules used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Loans", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer disclosed the estimated fair values for certain loans measured at amortized cost. The following deficiencies were identified:\n· The firm did not perform substantive procedures to test the fair values of these loans, beyond comparing the amounts disclosed to the issuer-prepared schedules discussed above. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of certain contracts under these types of arrangements for appropriate revenue recognition. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether the contracts contained embedded leases and whether all performance obligations were identified. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of certain contracts under these types of arrangements for appropriate revenue recognition. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether the contracts contained embedded leases and whether all performance obligations were identified. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether certain contracts contained embedded leases because it did not evaluate certain terms that may have met the definition of a lease. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether certain contracts contained embedded leases because it did not evaluate certain terms that may have met the definition of a lease. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether all performance obligations were identified for certain contracts because it did not identify that the contracts contained an option that may have represented a material right. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not sufficiently evaluate whether all performance obligations were identified for certain contracts because it did not identify that the contracts contained an option that may have represented a material right. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not identify and test any controls over the issuer’s determination of the standalone selling prices. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the reasonableness of the significant assumptions the issuer used to estimate standalone selling prices. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures to evaluate whether the issuer’s capitalization of certain contract costs was in conformity with FASB ASC Topic 340, Other Assets and Deferred Costs, beyond, for a selection of costs capitalized during the year, reading the contracts and comparing the costs to the issuer’s subledger. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to evaluate whether the period the issuer used to amortize the capitalized contract costs for contracts with multiple performance obligations was in conformity with FASB ASC Topic 340. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm identified control deficiencies related to controls over certain revenue contracts at one of the issuer’s locations. The firm did not evaluate the severity of these control deficiencies, individually or in combination, to determine whether they represented a material weakness. (AS 2201.62)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to the issuer’s customers for a sample of accounts receivable. For certain confirmations that were not returned, the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that these balances represented valid receivables as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the review of the data the issuer used to estimate the ACL but did not evaluate the specific review procedures that the control owner performed to assess the accuracy and completeness of these data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the review of the data the issuer used to estimate the ACL but did not evaluate the specific review procedures that the control owner performed to assess the accuracy and completeness of these data. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing a control that consisted of the issuer’s review of the valuation of certain assets acquired and liabilities assumed. The firm did not identify and test any controls over the accuracy and completeness of a system-generated report that the control owners used in the operation of this control for certain liabilities assumed. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. In its evaluation of the issuer’s revenue recognition for these arrangements, the firm did not evaluate, beyond reading certain issuer-prepared memorandums, (1) whether the issuer identified all performance obligations in its customer contracts and (2) certain contractual terms and conditions that could affect the issuer’s revenue recognition. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Financial Reporting", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer disclosed various material weaknesses, including deficiencies related to segregation of duties. In understanding the issuer’s financial reporting process, the firm identified that the general ledger system allowed individuals to both post and approve journal entries and to edit journal entries after they have been approved. The firm did not perform any substantive procedures to address these risks related to inappropriate segregation of duties. (AS 2301.08; AS 2401.61)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Financial Reporting", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The issuer disclosed various material weaknesses, including deficiencies related to segregation of duties. In understanding the issuer’s financial reporting process, the firm identified that the general ledger system allowed individuals to both post and approve journal entries and to edit journal entries after they have been approved. The firm did not perform any substantive procedures to address these risks related to inappropriate segregation of duties. (AS 2301.08; AS 2401.61)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its evaluation of its ability to continue as a going concern. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain significant assumptions the issuer used to develop the forecasted cash flows used in its evaluation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of its evaluation of its ability to continue as a going concern. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain significant assumptions the issuer used to develop the forecasted cash flows used in its evaluation. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "238", "Firm Names": "PricewaterhouseCoopers LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review and approval of manual journal entries prior to posting them to the general ledger. In evaluating the design of this control, the firm did not identify that the general ledger system allowed the control owners to modify journal entries prior to posting. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to initiate transactions related to certain revenue. In its testing of controls over this revenue, the firm tested various automated and IT-dependent manual controls that used data generated by this IT system. As a result of the following audit deficiencies, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)\nIn connection with our review, the issuer reevaluated its controls over this revenue 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to initiate transactions related to certain revenue. The firm identified a control deficiency related to change management for this IT system. The following audit deficiencies were identified:\n· The firm identified and tested a compensating control that it believed mitigated this deficiency but did not identify that the control owner used information in the performance of this control that was produced by this IT system. (AS 2201.68)\nIn connection with our review, the issuer reevaluated its controls over this revenue 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The issuer used an information-technology (IT) system to initiate transactions related to certain revenue. The firm identified a control deficiency related to change management for this IT system. The following audit deficiencies were identified:\n· The firm did not sufficiently evaluate the severity of the control deficiency because it did not accurately calculate the magnitude of the potential misstatement resulting from this deficiency. (AS 2201.62)\nIn connection with our review, the issuer reevaluated its controls over this revenue 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For this revenue,, the following additional deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain information used to record revenue. (AS 2201.39)\nIn connection with our review, the issuer reevaluated its controls over this revenue 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 and reissued its report." }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For this revenue,, the following additional deficiencies were identified:\n· The firm’s substantive procedures to test revenue included testing a sample of transactions. The firm did not perform any procedures to test whether performance obligations were satisfied before revenue was recognized. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For this revenue,, the following additional deficiencies were identified:\n· For certain of this revenue, the firm did not perform procedures to test, or test controls over, the accuracy and completeness of certain information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of certain of its intangible assets for possible impairment. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of this assessment and related significant assumptions. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of certain of its intangible assets for possible impairment. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of this assessment and related significant assumptions. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of certain of its intangible assets for possible impairment. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist or by the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of certain of its intangible assets for possible impairment. The following deficiencies were identified:\n· The firm did not perform any substantive procedures to evaluate the reasonableness of certain significant assumptions developed by the company’s specialist or by the issuer. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of certain of its intangible assets for possible impairment. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of certain other significant assumptions developed by the issuer because its procedures were limited to evaluating the assumptions for consistency with the issuer’s recent experience. Further, the firm did not evaluate certain significant differences between these assumptions and the issuer’s recent experience. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test one type of revenue at one business unit included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account the allowable risk of incorrect acceptance. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test one type of revenue at one business unit included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account the allowable risk of incorrect acceptance. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test one type of revenue at one business unit included selecting a sample of transactions for testing. The firm’s sample was too small to provide sufficient appropriate audit evidence because, in determining the sample size, the firm did not take into account the allowable risk of incorrect acceptance. (AS 2315.16, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm subjected this type of revenue from certain other business units to less extensive audit procedures. In determining the extent to which audit procedures should be performed, the firm did not evaluate (1) the materiality of these business units, (2) the specific risks associated with these business units, and (3) whether the risks of material misstatement that the firm identified for the business unit subject to more extensive audit procedures also applied to these business units. (AS 2101.11 and .12)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm subjected this type of revenue from certain other business units to less extensive audit procedures. In determining the extent to which audit procedures should be performed, the firm did not evaluate (1) the materiality of these business units, (2) the specific risks associated with these business units, and (3) whether the risks of material misstatement that the firm identified for the business unit subject to more extensive audit procedures also applied to these business units. (AS 2101.11 and .12)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For another business unit, the issuer contracted with an external party to manufacture and sell products on behalf of the issuer and recognized the associated revenue based on information it obtained from this external party. The following deficiencies were identified:\n· The firm’s procedures to test the completeness of this revenue consisted of performing substantive analytical procedures. The firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "For another business unit, the issuer contracted with an external party to manufacture and sell products on behalf of the issuer and recognized the associated revenue based on information it obtained from this external party. The following deficiencies were identified:\n· The firm’s procedures to test the completeness of this revenue consisted of performing substantive analytical procedures. The firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For another business unit, the issuer contracted with an external party to manufacture and sell products on behalf of the issuer and recognized the associated revenue based on information it obtained from this external party. The following deficiencies were identified:\n· The issuer recognized certain of this revenue based on sales of this product to the external party. The firm obtained and used information from the external party in its substantive testing of this revenue but did not perform procedures to evaluate the reliability of this information. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For another business unit, the issuer contracted with an external party to manufacture and sell products on behalf of the issuer and recognized the associated revenue based on information it obtained from this external party. The following deficiencies were identified:\n· The issuer recognized certain of this revenue based on sales of this product to the external party. The firm obtained and used information from the external party in its substantive testing of this revenue but did not perform procedures to evaluate the reliability of this information. (AS 1105.04 and .06)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For another business unit, the issuer contracted with an external party to manufacture and sell products on behalf of the issuer and recognized the associated revenue based on information it obtained from this external party. The following deficiencies were identified:\n· The issuer recognized certain of this revenue based on sales of this product to the external party. The firm did not evaluate the terms and conditions included in the issuer’s sales contract with the external party. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair values of certain acquired assets. The following deficiencies were identified:\n· For one of these assets, the firm did not sufficiently evaluate the reasonableness of a significant assumption developed by the issuer because it did not perform any procedures to evaluate the reasonableness of a component of this significant assumption. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged a specialist to determine the fair values of certain acquired assets. The following deficiencies were identified:\n· For certain other assets, the firm did not perform any procedures to test the accuracy and completeness of issuer-produced information that was used by the specialist to determine their fair values. (AS 1105.A8a)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate misstatements in certain required disclosures under FASB ASC Topic 470, Debt, and FASB ASC Topic 805, Business Combinations, related to the accounting for the purchase price allocation. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate misstatements in certain required disclosures under FASB ASC Topic 470, Debt, and FASB ASC Topic 805, Business Combinations, related to the accounting for the purchase price allocation. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used an issuer-prepared schedule in its substantive testing of the issuer’s statement of cash flows but did not perform any procedures to test, or test controls over, the accuracy and completeness of certain information included in this schedule. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "For certain of the issuer’s business units, 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 business units. (AS 2401.61)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using various risk-weighted qualitative factors. The following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of these qualitative factors using an internally developed framework comprised of various assumptions. The firm did not identify and test any controls that addressed the (1) reasonableness of the assumptions from the framework that were used in the operation of this control, (2) reasonableness of the risk weights assigned to the qualitative factors, and (3) the accuracy of certain loan information used in the operation of the issuer’s controls over the ACL that the firm selected for testing. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For loans that were collectively evaluated for impairment, the issuer determined the qualitative reserve component of the ACL using various risk-weighted qualitative factors. The following deficiencies were identified:\n· The firm’s approach for substantively testing the qualitative reserve component of the ACL was to test the issuer’s process. The firm did not perform any procedures to evaluate whether the issuer had a reasonable basis for the qualitative factors used in developing the reserve. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the loan risk ratings assigned to certain loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the loan risk ratings assigned to certain loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of the loan risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the loan risk ratings assigned to certain loans. The firm did not assess whether the issuer’s review was designed to occur with sufficient scope and frequency to address the risks of material misstatement. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s comparison of loan risk ratings determined by an external loan reviewer to loan risk ratings determined by the issuer. The firm did not identify and test any controls that addressed the reasonableness of the loan risk ratings determined by the external loan reviewer. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm’s substantive procedures to test the reasonableness of the assigned loan risk rating for these loans included selecting a sample of loans for testing. The sample size that the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm’s substantive procedures to test the reasonableness of the assigned loan risk rating for these loans included selecting a sample of loans for testing. The sample size that the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer assigned certain loans a loan risk rating, which was an important input in estimating the quantitative component of the ACL. The following deficiencies were identified:\n· The firm’s substantive procedures to test the reasonableness of the assigned loan risk rating for these loans included selecting a sample of loans for testing. The sample size that the firm used was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing controls that included the issuer’s review of the valuation of acquired loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the (1) reasonableness of the assumptions the issuer used to develop the fair value of these loans and (2) accuracy and completeness of certain data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business. The firm selected for testing controls that included the issuer’s review of the valuation of acquired loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the (1) reasonableness of the assumptions the issuer used to develop the fair value of these loans and (2) accuracy and completeness of certain data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment, and the firm selected for testing a control that consisted of the issuer’s review of this assessment and related significant assumptions. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain significant assumptions used in the assessment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment, and the firm selected for testing a control that consisted of the issuer’s review of this assessment and related significant assumptions. The firm did not evaluate the specific review procedures the control owner performed to assess the reasonableness of certain significant assumptions used in the assessment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to perform an assessment of its goodwill for possible impairment, and the firm selected for testing a control that consisted of the issuer’s review of this assessment and related significant assumptions. The firm did not identify and test any controls over the review of the forecasted financial information used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not perform procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· In testing the issuer’s process, the firm did not perform sufficient procedures to evaluate the reasonableness of another significant assumption developed by the company’s specialist because its procedures were limited to evaluating this assumption for consistency with historical experience, without taking into account changes in conditions and events affecting the issuer. (AS 1105.A8b)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the relevance and reliability of the company’s specialist’s work because it did not identify and evaluate inconsistencies between another significant assumption developed by the company’s specialist and (1) the auditor-employed specialist’s independent expectation of this assumption and (2) management’s analysis of this assumption. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the relevance and reliability of the company’s specialist’s work because it did not identify and evaluate inconsistencies between another significant assumption developed by the company’s specialist and (1) the auditor-employed specialist’s independent expectation of this assumption and (2) management’s analysis of this assumption. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· In developing an independent expectation, the firm used another significant assumption. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for its selection of this significant assumption from a range of potential assumptions. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· In developing an independent expectation, the firm used another significant assumption. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for its selection of this significant assumption from a range of potential assumptions. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the issuer’s impairment assessment consisted of (1) testing the issuer’s process and (2) developing an independent expectation of the fair value of the issuer’s single reporting unit with the assistance of an auditor-employed specialist. The following deficiencies were identified:\n· In developing an independent expectation, the firm used another significant assumption. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for its selection of this significant assumption from a range of potential assumptions. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recorded the fair value of certain of its available-for-sale (AFS) securities based on prices it obtained from an external pricing service. The firm selected for testing a control that consisted of the issuer’s comparison of its recorded prices to prices obtained from another external pricing service and the issuer’s investigation of price variances that exceeded certain thresholds. The firm did not evaluate the specific review procedures that the control owner performed to (1) assess whether the prices the issuer used in this comparison were derived from independent sources and (2) investigate identified variances and determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recorded the fair value of certain of its available-for-sale (AFS) securities based on prices it obtained from an external pricing service. The firm selected for testing a control that consisted of the issuer’s comparison of its recorded prices to prices obtained from another external pricing service and the issuer’s investigation of price variances that exceeded certain thresholds. The firm did not evaluate the specific review procedures that the control owner performed to (1) assess whether the prices the issuer used in this comparison were derived from independent sources and (2) investigate identified variances and determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of certain AFS securities for potential impairment. The firm did not identify and test any controls over the accuracy and completeness of certain information used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the fair values of certain of the issuer’s held-to-maturity securities was to test the issuer's process, and the firm used an auditor-employed specialist to evaluate the methods and significant assumptions used by the issuer. The firm did not sufficiently test the fair value of these investments because it did not identify that the auditor-employed specialist did not perform procedures to evaluate whether the issuer had a reasonable basis for certain significant assumptions it used. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the fair values of certain of the issuer’s held-to-maturity securities was to test the issuer's process, and the firm used an auditor-employed specialist to evaluate the methods and significant assumptions used by the issuer. The firm did not sufficiently test the fair value of these investments because it did not identify that the auditor-employed specialist did not perform procedures to evaluate whether the issuer had a reasonable basis for certain significant assumptions it used. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the fair values of certain of the issuer’s held-to-maturity securities was to test the issuer's process, and the firm used an auditor-employed specialist to evaluate the methods and significant assumptions used by the issuer. The firm did not sufficiently test the fair value of these investments because it did not identify that the auditor-employed specialist did not perform procedures to evaluate whether the issuer had a reasonable basis for certain significant assumptions it used. (AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair values for its investments in certain entities. The firm’s approach for substantively testing these fair value measurements was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the company’s specialist because the auditor-employed specialist did not take into account inconsistencies between these assumptions and other significant assumptions developed by the issuer. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair values for its investments in certain entities. The firm’s approach for substantively testing these fair value measurements was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the company’s specialist because the auditor-employed specialist did not take into account inconsistencies between these assumptions and other significant assumptions developed by the issuer. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair values for its investments in certain entities. The firm’s approach for substantively testing these fair value measurements was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the company’s specialist because the auditor-employed specialist did not take into account inconsistencies between these assumptions and other significant assumptions developed by the issuer. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair values for its investments in certain entities. The firm’s approach for substantively testing these fair value measurements was to test the issuer’s process, and the firm used an auditor-employed specialist to evaluate certain significant assumptions the company’s specialist used. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of certain significant assumptions developed by the issuer because it did not perform any procedures to evaluate the reasonableness of certain components of these assumptions. Further, for certain of these significant assumptions, the firm did not evaluate significant differences between these assumptions and the issuer’s recent experience. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test the issuer’s disclosure related to remaining performance obligations included selecting a sample of contracts for testing. For certain of these contracts, the firm did not perform procedures to evaluate the reasonableness of a significant assumption used by the issuer to develop this disclosure. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain of its long-lived assets for possible impairment at year end and concluded that the carrying value of these assets was recoverable. The firm did not identify that the issuer did not consider an indicator of possible impairment in its assessment of the recoverability of these assets. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer used an IT system to record transactions related to revenue. The firm did not identify and test any controls that addressed the risk that users with the ability to develop changes also had the ability to implement those changes. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer used an IT system to record transactions related to revenue. In its testing of controls over revenue, the firm tested an IT-dependent manual control that used a report generated from this system. As a result of this deficiency in the firm’s testing of ITGCs, the firm’s testing of this IT-dependent manual control was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nFor certain revenue, the following additional deficiencies were identified:\n· For one type of revenue, the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized, beyond comparisons to customer payments and/or issuer-produced information. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nFor certain revenue, the following additional deficiencies were identified:\n· For one type of revenue, the firm did not perform substantive procedures to test whether performance obligations had been satisfied before revenue was recognized, beyond comparisons to customer payments and/or issuer-produced information. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nFor certain revenue, the following additional deficiencies were identified:\n· For another type of revenue, the firm’s substantive procedures consisted of selecting a sample of transactions for testing. For certain transactions, the firm did not perform procedures to test, or test controls over, the accuracy of certain issuer-produced information that the firm used in its testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe firm selected for testing a control that consisted of the issuer’s review of the valuation of deferred tax assets. The firm did not identify and test any controls over the review of forecasted financial information used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "During the year, the issuer entered into agreements resulting in the issuance of convertible notes and an option for the creditor to purchase additional convertible notes; the issuer accounted for this option as a liability. Certain of these notes were subsequently converted to equity. The following deficiencies were identified:\n· The firm’s approach for substantively testing the fair values of the convertible notes and related purchase option at issuance and year end was to develop independent expectations of the estimates using the work of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a component of a significant assumption it developed and used in each independent expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "During the year, the issuer entered into agreements resulting in the issuance of convertible notes and an option for the creditor to purchase additional convertible notes; the issuer accounted for this option as a liability. Certain of these notes were subsequently converted to equity. The following deficiencies were identified:\n· The firm’s approach for substantively testing the fair values of the convertible notes and related purchase option at issuance and year end was to develop independent expectations of the estimates using the work of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a component of a significant assumption it developed and used in each independent expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "During the year, the issuer entered into agreements resulting in the issuance of convertible notes and an option for the creditor to purchase additional convertible notes; the issuer accounted for this option as a liability. Certain of these notes were subsequently converted to equity. The following deficiencies were identified:\n· The firm’s approach for substantively testing the fair values of the convertible notes and related purchase option at issuance and year end was to develop independent expectations of the estimates using the work of an auditor-employed specialist. The firm did not identify that the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a component of a significant assumption it developed and used in each independent expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer entered into agreements resulting in the issuance of convertible notes and an option for the creditor to purchase additional convertible notes; the issuer accounted for this option as a liability. Certain of these notes were subsequently converted to equity. The following deficiencies were identified:\n· The firm’s approach for substantively testing the fair value of the converted notes was to test the issuer’s process. The firm did not evaluate whether the method used by the issuer to measure the fair value was in conformity with the requirements of FASB ASC Topic 820, Fair Value Measurement. (AS 2501.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the year, events or changes in circumstances existed indicating that the carrying value of certain of the issuer’s intangible assets may not be recoverable and the issuer performed assessments of these assets for possible impairment. The following deficiencies were identified:\n· For one asset group, the firm did not perform any substantive procedures to test the issuer’s impairment assessment. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "During the year, events or changes in circumstances existed indicating that the carrying value of certain of the issuer’s intangible assets may not be recoverable and the issuer performed assessments of these assets for possible impairment. The following deficiencies were identified:\n· For another asset group, the firm’s substantive procedures to test the issuer’s impairment assessment consisted of developing an independent expectation of the undiscounted cash flows used to assess the asset group for recoverability. In developing its expectation, the firm did not perform procedures to demonstrate it had a reasonable basis for the undiscounted cash flow period it used, including taking into account certain requirements of FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2501.21 and .22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "During the year, events or changes in circumstances existed indicating that the carrying value of certain of the issuer’s intangible assets may not be recoverable and the issuer performed assessments of these assets for possible impairment. The following deficiencies were identified:\n· For another asset group, the firm’s substantive procedures to test the issuer’s impairment assessment consisted of developing an independent expectation of the undiscounted cash flows used to assess the asset group for recoverability. In developing its expectation, the firm did not perform procedures to demonstrate it had a reasonable basis for the undiscounted cash flow period it used, including taking into account certain requirements of FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2501.21 and .22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used a service organization to host and maintain an IT system that the issuer used to initiate, process, and record transactions related to revenue and inventory. In its testing of controls over these accounts, the firm tested certain automated and/or IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the following deficiency in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used a service organization to host and maintain an IT system that the issuer used to initiate, process, and record transactions related to revenue and inventory. In its testing of controls over these accounts, the firm tested certain automated and/or IT-dependent manual controls that used data and reports generated or maintained by this IT system. As a result of the following deficiency in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to this service organization, the firm obtained a service auditor’s report and identified a complementary user control related to change management that the service auditor’s report described as necessary. The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to this service organization, the firm obtained a service auditor’s report and identified a complementary user control related to change management that the service auditor’s report described as necessary. The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "With respect to this service organization, the firm obtained a service auditor’s report and identified a complementary user control related to change management that the service auditor’s report described as necessary. The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B22", "Description in the Firm's Inspection Report": "With respect to this service organization, the firm obtained a service auditor’s report and identified a complementary user control related to change management that the service auditor’s report described as necessary. The firm did not perform procedures, beyond inquiry, to evaluate whether the issuer had implemented this control. (AS 2201.39 and .B22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The firm did not perform procedures to test, or sufficiently test controls over, the completeness of certain reports that the firm used in its substantive testing of revenue. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over revenue, as follows:\n· The sample sizes the firm used in its substantive procedures to test revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm’s control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used two IT systems to initiate, process, and record transactions related to certain revenue. In its testing of controls over this revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of ITGCs, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to change management, the firm selected for testing a control over the issuer’s review of changes to the production environments for these IT systems. The firm did not 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to change management, the firm selected for testing a control over the issuer’s review of changes to the production environments for these IT systems. The firm did not 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to change management, the firm selected for testing a control over the issuer’s review of changes to the production environments for these IT systems. The firm did not identify that this control was not designed to address the risk that unauthorized changes were made to these systems, as certain users with the ability to develop and implement changes also had administrative access to the monitoring tools used in the operation of this control. (AS 2201.42)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· The sample sizes that the firm used in certain of its substantive procedures to test this revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies, the firm did not perform sufficient substantive procedures over this revenue, as follows:\n· For certain of this revenue, the firm did not perform procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data and reports the firm used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The auditor-employed specialist used data from external sources to develop certain significant assumptions for its independent expectations. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate the relevance of these data. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The auditor-employed specialist used data from external sources to develop certain significant assumptions for its independent expectations. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate the relevance of these data. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The auditor-employed specialist used data from external sources to develop certain significant assumptions for its independent expectations. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate the relevance of these data. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The auditor-employed specialist used data from external sources to develop certain significant assumptions for its independent expectations. The firm did not identify that the auditor-employed specialist did not perform any procedures to evaluate the relevance of these data. (AS 1105.04 and .06; AS 1201.C6 and .C7)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform any procedures to demonstrate it had a reasonable basis for certain other significant assumptions used for its independent expectations. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform any procedures to demonstrate it had a reasonable basis for certain other significant assumptions used for its independent expectations. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investments", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm’s approach to substantively test the fair value of certain investments was to develop independent expectations of the fair values using the work of an auditor-employed specialist. The following deficiencies were identified:\n· The firm did not identify that the auditor-employed specialist did not perform any procedures to demonstrate it had a reasonable basis for certain other significant assumptions used for its independent expectations. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer performed an assessment of goodwill for possible impairment using various significant assumptions. The following deficiencies were identified:\n· The firm did not identify and test any controls over the reasonableness of the significant assumptions used in the impairment assessment. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed an assessment of goodwill for possible impairment using various significant assumptions. The following deficiencies were identified:\n· The firm did not sufficiently evaluate the reasonableness of certain significant assumptions used in the impairment assessment because its procedures were limited to performing sensitivity analyses. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of its assessment of long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owners performed to assess the qualitative factors used to determine whether indicators of possible impairment existed. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of its assessment of long-lived assets for possible impairment. The firm did not evaluate the specific review procedures that the control owners performed to assess the qualitative factors used to determine whether indicators of possible impairment existed. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing one component of the issuer’s reserve for excess and obsolete inventory was to test the issuer’s process. The firm did not sufficiently evaluate the reasonableness of a significant assumption the issuer used because the firm did not (1) take into account the issuer’s ability to carry out this assumption, (2) take into account changes in conditions and events affecting the issuer, and (3) evaluate significant differences between this assumption and the issuer’s historical experience. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing one component of the issuer’s reserve for excess and obsolete inventory was to test the issuer’s process. The firm did not sufficiently evaluate the reasonableness of a significant assumption the issuer used because the firm did not (1) take into account the issuer’s ability to carry out this assumption, (2) take into account changes in conditions and events affecting the issuer, and (3) evaluate significant differences between this assumption and the issuer’s historical experience. (AS 2501.16 and .17)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used a system-generated report in its substantive procedures to test the remainder of the issuer’s reserve for excess and obsolete inventory. The firm relied on its testing of the accuracy and completeness of this report that was performed in the prior year. The firm did not perform sufficient procedures to test, or sufficiently test controls over, the accuracy and completeness of this report because it did not take into account that user access controls over this IT system were ineffective. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test certain revenue included selecting a sample of transactions for testing. For certain of these selections, the firm did not perform sufficient procedures to evaluate whether the customer contracts met the collectability criteria required to recognize revenue under FASB ASC Topic 606, Revenue from Contracts with Customers, because these customers did not meet one or more of the issuer’s established credit policies and the firm did not evaluate the basis on which the customer or transaction was approved. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain contracts, the issuer recognized revenue over time based on costs incurred to date relative to total estimated costs to complete. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions that the issuer used to develop the estimated costs to complete the open contracts the firm selected for testing. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "N", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Business Combination", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and determined the fair value of certain acquired intangible assets using various significant assumptions. The firm’s approach for substantively testing the fair values of these assets was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used in the valuation of these assets. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "O", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm identified a significant deficiency related to an IT system that the issuer used to record revenue. The firm’s substantive procedures to test revenue at one business unit included selecting samples of transactions for testing. The sample sizes the firm used were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported, as it did not take into account the potential effect of the significant deficiency on the controls it relied upon. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "P", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For certain contracts, the issuer recognized revenue over time based on costs incurred to date relative to total estimated costs to complete. The firm selected for testing a control that included the issuer’s review of the (1) revenue calculations, (2) accuracy and completeness of certain related information, and (3) corresponding journal entries. In its testing of the operating effectiveness of this control, the firm did not test these aspects. (AS 2201.44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "Q", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Income Taxes", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test, or test any controls over, the accuracy and completeness of certain information produced by the issuer that the firm used in its substantive testing of the income tax provision and a deferred tax asset. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the relevance and reliability of certain forecasted financial information because it did not evaluate management’s ability to sustain revenue from existing customers. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the relevance and reliability of certain forecasted financial information because it did not evaluate management’s ability to sustain revenue from existing customers. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the relevance and reliability of certain forecasted financial information because it did not evaluate management’s ability to sustain revenue from existing customers. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the relevance and reliability of certain forecasted financial information because it did not evaluate management’s ability to sustain revenue from existing customers. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "243", "Firm Names": "BDO USA, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "BDO International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "R", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not sufficiently evaluate the relevance and reliability of certain forecasted financial information because it did not evaluate management’s ability to sustain revenue from existing customers. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s reviews of the estimated standalone selling prices. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant assumptions used to develop the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s reviews of the estimated standalone selling prices. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant assumptions used to develop the standalone selling prices. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Certain of the issuer’s revenue arrangements included multiple performance obligations. The issuer allocated the total transaction price for each of these arrangements to the separate performance obligations based on the issuer’s estimate of the relative standalone selling prices. The following deficiencies were identified:\n· The firm’s approach for substantively testing the estimated standalone selling prices was to test the issuer’s process. The firm selected a sample of revenue arrangements for testing but did not perform procedures to evaluate the reasonableness of certain significant assumptions used to develop the standalone selling prices, beyond performing a sensitivity analysis for certain revenue arrangements selected for testing. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether the issuer had met certain revenue recognition criteria for these bill-and-hold arrangements. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified:\n· The firm did not perform substantive procedures to evaluate whether the issuer had met certain revenue recognition criteria for these bill-and-hold arrangements, beyond reading an issuer-prepared memorandum. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "During the year, the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified:\n· The firm did not perform substantive procedures to evaluate whether the issuer had met certain revenue recognition criteria for these bill-and-hold arrangements, beyond reading an issuer-prepared memorandum. (AS 2301.08 and .13)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers, related to when performance obligations are satisfied under bill-and-hold arrangements. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer recorded revenue from bill-and-hold arrangements with one of its customers. The following deficiencies were identified:\n· The firm did not identify and evaluate the issuer’s omission of a required disclosure under FASB ASC Topic 606, Revenue from Contracts with Customers, related to when performance obligations are satisfied under bill-and-hold arrangements. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to the issuer’s allowance for doubtful accounts, the following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the allowance for doubtful accounts at one of the issuer’s business units. The firm did not 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to the issuer’s allowance for doubtful accounts, the following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s review of the allowance for doubtful accounts at one of the issuer’s business units. The firm did not 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to the issuer’s allowance for doubtful accounts, the following deficiencies were identified:\n· The firm’s approach for substantively testing the allowance for doubtful accounts at this business unit was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions the issuer used to develop this allowance. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "With respect to the issuer’s allowance for doubtful accounts, the following deficiencies were identified:\n· The firm’s approach for substantively testing the allowance for doubtful accounts at this business unit was to test the issuer’s process. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions the issuer used to develop this allowance. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to revenue and accounts receivable at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm selected for testing an entity-level control that included the issuer’s comparison of forecasts, by business unit, to actual results, including revenue. The firm did not identify and test any controls over the forecasts used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to revenue and accounts receivable at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm selected for testing an entity-level control that included the issuer’s comparison of forecasts, by business unit, to actual results, including revenue. The firm did not identify and test any controls over the forecasts used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to revenue and accounts receivable at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm did not perform any substantive procedures to test revenue and accounts receivable for these business units. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to revenue and accounts receivable at certain other business units that the firm subjected to less extensive audit procedures, the following deficiencies were identified:\n· The firm did not perform any substantive procedures to test revenue and accounts receivable for these business units. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "With respect to the issuer’s revenue disclosures, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of certain revenue disclosures but did not test the aspect of the control that addressed the accuracy and completeness of the issuer-prepared schedules used to prepare these disclosures. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "With respect to the issuer’s revenue disclosures, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of certain revenue disclosures but did not test the aspect of the control that addressed the accuracy and completeness of the issuer-prepared schedules used to prepare these disclosures. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "With respect to the issuer’s revenue disclosures, the following deficiencies were identified:\n· The firm used these issuer-prepared schedules in its substantive testing of these revenue disclosures but did not perform any procedures to test, or sufficiently test controls over, the accuracy and completeness of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing two controls that consisted of the issuer’s review of the reserve for excess and obsolete inventory at certain business units. For the first control, the firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the significant assumptions that the issuer used to develop this reserve. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing two controls that consisted of the issuer’s review of the reserve for excess and obsolete inventory at certain business units. For the first control, the firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the significant assumptions that the issuer used to develop this reserve. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing two controls that consisted of the issuer’s review of the reserve for excess and obsolete inventory at certain business units. For the second control, the firm did not identify and test any controls over the accuracy of certain data that the control owners used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the reserve for excess and obsolete inventory at these business units was to test the issuer’s process. The following deficiencies were identified:\n· The firm did not perform procedures to evaluate the reasonableness of the significant assumptions that the issuer used to develop this reserve, beyond reading an issuer-prepared memorandum. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the reserve for excess and obsolete inventory at these business units was to test the issuer’s process. The following deficiencies were identified:\n· The firm used certain issuer-produced data in its testing of this reserve but did not test, or test any controls over, the accuracy of these data. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s inventory was subject to cycle counts, and the issuer’s cycle-count policy required this inventory to be counted at specific frequencies during the year. The following deficiencies were identified:\n· The firm did not identify and test any controls that addressed whether each inventory item was counted with sufficient frequency in accordance with the issuer’s cycle-count policy. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain of the issuer’s inventory was subject to cycle counts, and the issuer’s cycle-count policy required this inventory to be counted at specific frequencies during the year. The following deficiencies were identified:\n· The firm selected for testing a control that consisted of the issuer’s monitoring of its cycle count results. The firm did not identify and test any controls over the accuracy and completeness of certain information that the control owners used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to the issuer’s work-in-process inventory at certain business units that the firm subjected to more extensive audit procedures, the following deficiencies were identified:\n· The firm did not identify and test any controls over the existence of this work-in-process inventory. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "With respect to the issuer’s work-in-process inventory at certain business units that the firm subjected to more extensive audit procedures, the following deficiencies were identified:\n· The firm did not perform any procedures to test the existence of this work-in-process inventory. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer recognized certain revenue upon its delivery of products to a customer, and also delivered additional products to this customer in exchange for the return of products sold to the customer in the previous year. The firm did not identify and evaluate that the issuer’s conclusion that certain criteria required to recognize revenue for the products sold to this customer had been met was not in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer recognized certain revenue upon its delivery of products to a customer, and also delivered additional products to this customer in exchange for the return of products sold to the customer in the previous year. The firm did not identify and evaluate that the issuer’s conclusion that the exchange of products did not represent a product return was not in conformity with FASB ASC Topic 606. (AS 2810.30)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer entered into arrangements to purchase inventory from certain suppliers. The firm did not evaluate whether these arrangements represented firm purchase commitments for which a loss should have been recognized under FASB ASC Topic 330, Inventory. Further, the firm did not evaluate whether these arrangements created an unconditional performance obligation that would have required disclosure under FASB ASC Topic 440, Commitments. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information technology (IT) systems to initiate, process, and record transactions related to certain revenue and insurance-related liabilities. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information technology (IT) systems to initiate, process, and record transactions related to certain revenue and insurance-related liabilities. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm’s testing of IT general controls, the firm’s testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain system change reports that the control owners used in the operation of this control at all three business units. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· The firm did not identify and test any controls over the accuracy and completeness of certain system change reports that the control owners used in the operation of this control at all three business units. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· For the control at one of these business units, the firm did not evaluate the specific review procedures that the control owner performed to assess whether the system changes were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· For the control at one of these business units, the firm did not evaluate the specific review procedures that the control owner performed to assess whether the system changes were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· For the control at one of these business units, the firm did not evaluate the specific review procedures that the control owner performed to assess whether the system changes were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control at three of the issuer’s business units that consisted of the issuer’s monitoring and review of changes to certain of these IT systems. The following deficiencies were identified:\n· For the control at one of these business units, the firm did not evaluate the specific review procedures that the control owner performed to assess whether the system changes were appropriate. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm used the system change reports discussed above to select its samples for testing this control at all three business units but did not test, or test any controls over, the completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm used the system change reports discussed above to select its samples for testing this control at all three business units but did not test, or test any controls over, the completeness of these reports. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm performed certain of its testing of this control at all three business units in the issuer’s testing environment, rather than in its production environment, but did not perform any procedures to determine whether the testing environment was consistent with the production environment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm performed certain of its testing of this control at all three business units in the issuer’s testing environment, rather than in its production environment, but did not perform any procedures to determine whether the testing environment was consistent with the production environment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm performed certain of its testing of this control at all three business units in the issuer’s testing environment, rather than in its production environment, but did not perform any procedures to determine whether the testing environment was consistent with the production environment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control at these three business units that consisted of the issuer’s approval of changes to these IT systems and testing of those changes prior to implementation into the production environment. The following deficiencies were identified:\n· The firm performed certain of its testing of this control at all three business units in the issuer’s testing environment, rather than in its production environment, but did not perform any procedures to determine whether the testing environment was consistent with the production environment. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue at two of these business units were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The firm did not perform sufficient procedures to test, or sufficiently test controls over, the completeness of certain system-generated data or reports that the firm used in its substantive testing of insurance-related liabilities at one of these business units. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "As a result of the firm’s control testing deficiencies discussed above, the firm did not perform sufficient substantive procedures, as follows:\n· The firm did not perform sufficient procedures to test, or sufficiently test controls over, the completeness of certain system-generated data or reports that the firm used in its substantive testing of insurance-related liabilities at one of these business units. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For revenue at one of the issuer’s segments, the firm did not identify and test any controls over the accuracy and completeness of certain customer order data that were entered or transferred into the issuer’s systems and used to recognize revenue. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For revenue at one of the issuer’s segments, the firm did not identify and test any controls over the accuracy and completeness of certain customer order data that were entered or transferred into the issuer’s systems and used to recognize revenue. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in its substantive procedures to test revenue and accounts receivable at this segment were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm’s control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "With respect to certain of the issuer’s disclosures related to revenue, the following deficiencies were identified:\n· The firm selected for testing a control that included the issuer’s review of its financial statement disclosures. The firm did not identify and test any controls over the accuracy and completeness of certain issuer-prepared schedules related to revenue that the control owners used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "With respect to certain of the issuer’s disclosures related to revenue, the following deficiencies were identified:\n· The firm used these issuer-prepared schedules in its substantive testing of these revenue disclosures but did not perform any procedures to test, or test any controls over, the accuracy and completeness of these schedules. (AS 1105.10)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "Certain inventory at one of the issuer’s segments was subject to cycle counts, and the issuer’s cycle-count policy required this inventory to be counted at specific frequencies during the year. The firm did not identify and test any controls that addressed (1) whether each inventory item was counted with sufficient frequency in accordance with the issuer’s cycle count policy and (2) the issuer’s monitoring of the accuracy of the cycle-count results. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the ACL, including the significant assumptions used. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of the ACL, including the significant assumptions used. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the accuracy and completeness of certain data that the control owners used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on customer contracts that included financing arrangements with the customer. The firm selected for testing a control over this revenue that consisted of the issuer’s review and approval of the credit application supporting the customer’s ability and intent to pay. The firm did not evaluate the specific review procedures that the control owners performed to assess whether the customer contracts had met the collectability criteria before revenue was recognized. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue based on customer contracts that included financing arrangements with the customer. The firm selected for testing a control over this revenue that consisted of the issuer’s review and approval of the credit application supporting the customer’s ability and intent to pay. The firm did not evaluate the specific review procedures that the control owners performed to assess whether the customer contracts had met the collectability criteria before revenue was recognized. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test this revenue consisted of selecting a sample of transactions for testing. The firm did not evaluate whether these transactions had met the collectability criteria before revenue was recognized, beyond reviewing the customer’s credit application. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer held certain inventory at external warehouses. The firm did not perform any procedures to test the existence of this inventory. (AS 2510.14)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer classified inventory as current or noncurrent based on its estimate of when it expected to sell the inventory. The firm’s approach for substantively testing this estimate was to test the issuer’s process. The firm did not perform procedures to evaluate the reasonableness of the significant assumptions that the issuer used to develop this estimate. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a misstatement in a required disclosure under FASB ASC Topic 230, Statement of Cash Flows. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer held inventory at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to more extensive audit procedures. The following deficiencies were identified:\n· Inventory at one of these business units was subject to cycle counts, and the issuer used its IT system to determine the frequency with which the items should be counted during the year by assigning a count designation to each inventory item. The firm did not identify and test any controls that addressed whether (1) the issuer’s IT system was configured to assign an appropriate count designation to each inventory item and (2) each inventory item was counted with sufficient frequency in accordance with the designated count frequency. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer held inventory at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to more extensive audit procedures. The following deficiencies were identified:\n· For a second of these business units, the firm identified control deficiencies related to the issuer’s cycle counts performed at certain locations, including the lack of monitoring of whether the cycle-count results were sufficiently accurate. The firm identified and tested compensating controls that it believed mitigated these deficiencies but did not identify that these compensating controls did not address the accuracy of the cycle-counts results. (AS 2201.68)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer held inventory at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to more extensive audit procedures. The following deficiencies were identified:\n· For a third of these business units, the firm selected for testing controls over the existence of inventory that included the control owners’ use of various system-generated reports in the operation of the controls. The firm did not identify and test any controls that addressed the risk that unauthorized or inappropriate changes could be made to these reports. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For one segment, the firm selected for testing controls that consisted of the issuer’s reviews of the forecasts that were used in its entity-level controls over this segment, including the assumptions used in these forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For one segment, the firm selected for testing controls that consisted of the issuer’s reviews of the forecasts that were used in its entity-level controls over this segment, including the assumptions used in these forecasts. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of these assumptions. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For a second segment, the firm selected for testing a control that consisted of the issuer’s monthly comparisons of prior-period results to current-period results. The firm did not evaluate the specific review procedures that the control owners performed to determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For a second segment, the firm selected for testing a control that consisted of the issuer’s monthly comparisons of prior-period results to current-period results. The firm did not evaluate the specific review procedures that the control owners performed to determine whether items identified for follow up had been appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For a third segment, the firm selected for testing a control that consisted of the issuer’s quarterly comparisons of prior-period results to current-period results. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm’s internal inspection program had inspected this audit, reviewed these areas, and also identified the deficiencies below.\nThe issuer recorded transactions related to revenue at numerous business units. The firm subjected certain of the issuer’s business units that were included within three of the issuer’s segments to less extensive audit procedures. To address the risks of material misstatement related to revenue for these business units, the firm selected for testing various entity-level controls. The following deficiencies were identified:\n· For a third segment, the firm selected for testing a control that consisted of the issuer’s quarterly comparisons of prior-period results to current-period results. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer performed quantitative assessments of the possible impairment of its intangible assets at an interim date and at year end using cash-flow forecasts. The firm selected for testing a control that consisted of the issuer’s review of these cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions the issuer used in these forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer performed quantitative assessments of the possible impairment of its intangible assets at an interim date and at year end using cash-flow forecasts. The firm selected for testing a control that consisted of the issuer’s review of these cash-flow forecasts. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions the issuer used in these forecasts. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· For the interim impairment assessment, the firm did not sufficiently evaluate the reasonableness of certain significant assumptions because its procedures were limited to inquiring of management and evaluating these assumptions for consistency with the issuer’s historical or recent experience. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s approach for substantively testing the issuer’s impairment assessments was to test the issuer’s process. The following deficiencies were identified:\n· For the year-end impairment assessment, the firm did not sufficiently evaluate the reasonableness of certain significant assumptions because it did not evaluate the significant differences between these assumptions and the industry information it had obtained. Further, the firm did not perform any procedures to evaluate the reasonableness of certain other significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Payroll Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing various controls over payroll expenses but did not identify and test any controls over the accuracy of certain payroll data, including employee headcount and cost-center data, that were used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Payroll Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm’s substantive procedures to test payroll expenses included performing substantive analytical procedures. The firm used employee headcount data produced by the issuer to develop its expectations but did not test, or test any controls over, the accuracy of these data. (AS 2305.16)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Payroll Expenses", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer allocated its payroll costs to the various types of expenses it reported based on the cost centers to which its employees were assigned. The firm did not perform any substantive procedures to test whether the issuer’s allocation of certain of these payroll costs was appropriate. (AS 2301.08)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not evaluate the relevance and reliability of certain forecasted financial information that was particularly significant to those plans. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not evaluate the relevance and reliability of certain forecasted financial information that was particularly significant to those plans. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not evaluate the relevance and reliability of certain forecasted financial information that was particularly significant to those plans. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not evaluate the relevance and reliability of certain forecasted financial information that was particularly significant to those plans. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "J", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer used forecasted financial information in its evaluation of its ability to continue as a going concern and concluded that the substantial doubt was alleviated by its plans. In evaluating management’s plans, the firm did not evaluate the relevance and reliability of certain forecasted financial information that was particularly significant to those plans. (AS 1105.04 and .06; AS 2415.03, .08, and .09)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the appropriateness of the ACL but did not test the aspect of the control that addressed the accuracy and completeness of information that was included in an issuer-prepared memorandum that the control owners used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "K", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer’s review of the appropriateness of the ACL but did not test the aspect of the control that addressed the accuracy and completeness of information that was included in an issuer-prepared memorandum that the control owners used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "L", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of the possible impairment of certain intangible assets. The firm did not perform any substantive procedures to test this assessment. (AS 2501.07)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "During the year, the issuer completed numerous nonmonetary exchanges of inventory with various counterparties. The firm did not identify and evaluate the issuer’s omission of certain disclosures related to these nonmonetary exchanges that were required under FASB ASC Topic 845, Nonmonetary Transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Annually Inspected", "Registration ID": "248", "Firm Names": "Grant Thornton LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "26-Feb-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "M", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "During the year, the issuer completed numerous nonmonetary exchanges of inventory with various counterparties. The firm did not identify and evaluate the issuer’s omission of certain disclosures related to these nonmonetary exchanges that were required under FASB ASC Topic 845, Nonmonetary Transactions. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "317", "Firm Names": "Freed Maxick CPAs, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "During the year, the issuer acquired a business and engaged an external specialist to determine the fair value of the acquired intangible assets. The firm selected for testing a control that consisted of the issuer's review of the company's specialist report. The firm did not identify and test any controls over the reasonableness of certain assumptions provided by management to the company's specialist and used by the specialist in the determination of the fair value of the acquired intangible assets included in its report. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "317", "Firm Names": "Freed Maxick CPAs, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the review of journal entries. The firm did not sufficiently test the design and operating effectiveness of this control because its procedures to evaluate whether the control operators reviewing journal entries were different from the individuals preparing journal entries were limited to obtaining from management a listing of individuals who can prepare journal entries, without testing the completeness of this listing. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "317", "Firm Names": "Freed Maxick CPAs, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the review of journal entries. The firm did not sufficiently test the design and operating effectiveness of this control because its procedures to evaluate whether the control operators reviewing journal entries were different from the individuals preparing journal entries were limited to obtaining from management a listing of individuals who can prepare journal entries, without testing the completeness of this listing. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified:\n·\nWith respect to the substantive analytical procedure for the first type of revenue, the firm did not develop expectations that were sufficiently precise to identify potential material misstatements because it did not consider factors that significantly affected the amounts being audited. (AS 2305.17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified:\n·\nWith respect to the substantive analytical procedure for the second type of revenue, the firm identified differences in excess of the firm's established threshold but did not evaluate these differences beyond inquiring of management. (AS 2305.21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test two types of revenue consisted of performing analytical procedures and testing a sample of transactions. The following deficiency was identified:\n·\nThe firm selected a sample of transactions to perform its test of details over the first type of revenue. The firm did not perform procedures to test whether the issuer met the performance obligation prior to the recognition of revenue for certain transactions. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Payable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or identify and test controls over, the completeness of certain transactions included in a system-generated report that it used in its substantive procedures. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test revenue included analytical procedures. The firm developed its expectation for its analytical procedures using recorded amounts of revenue. The firm did not evaluate whether this data was sufficiently relevant and reliable for purposes of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test revenue included analytical procedures. The firm developed its expectation for its analytical procedures using recorded amounts of revenue. The firm did not evaluate whether this data was sufficiently relevant and reliable for purposes of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "483", "Firm Names": "HoganTaylor LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test revenue included analytical procedures. The firm developed its expectation for its analytical procedures using recorded amounts of revenue. The firm did not evaluate whether this data was sufficiently relevant and reliable for purposes of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Equity", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer not accounting for certain redeemable shares outside of permanent equity in conformity with FASB ASC Topic 480, Distinguishing Liabilities from Equity. (AS 2810.30)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer identified indicators of possible impairment for certain of its goodwill and intangible assets and performed a quantitative assessment, using a discounted cash flow model, to test the associated reporting unit for recoverability. The firm's approach for substantively testing goodwill and intangible assets for impairment was to test the issuer's process used to assess the recoverability of the reporting unit. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to revenue growth projections used in the recoverability test, including taking into account the issuer's intent and ability to achieve the assumed revenue growth rates, beyond inquiry, obtaining and reviewing certain customer proposals, and performing a sensitivity analysis. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "During the year, the issuer identified indicators of possible impairment for certain of its goodwill and intangible assets and performed a quantitative assessment, using a discounted cash flow model, to test the associated reporting unit for recoverability. The firm's approach for substantively testing goodwill and intangible assets for impairment was to test the issuer's process used to assess the recoverability of the reporting unit. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the significant assumptions related to revenue growth projections used in the recoverability test, including taking into account the issuer's intent and ability to achieve the assumed revenue growth rates, beyond inquiry, obtaining and reviewing certain customer proposals, and performing a sensitivity analysis. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer identified indicators of possible impairment for certain of its goodwill and intangible assets and performed a quantitative assessment, using a discounted cash flow model, to test the associated reporting unit for recoverability. The firm's approach for substantively testing goodwill and intangible assets for impairment was to test the issuer's process used to assess the recoverability of the reporting unit. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of a company-specific risk premium included as a part of the significant assumption related to the discount rate used by the issuer in its recoverability test. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "During the year, the issuer identified indicators of possible impairment for certain of its goodwill and intangible assets and performed a quantitative assessment, using a discounted cash flow model, to test the associated reporting unit for recoverability. The firm's approach for substantively testing goodwill and intangible assets for impairment was to test the issuer's process used to assess the recoverability of the reporting unit. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of the significant assumption related to the terminal growth rate used by the issuer in its recoverability test. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill and Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the year, the issuer identified indicators of possible impairment for certain of its goodwill and intangible assets and performed a quantitative assessment, using a discounted cash flow model, to test the associated reporting unit for recoverability. The firm's approach for substantively testing goodwill and intangible assets for impairment was to test the issuer's process used to assess the recoverability of the reporting unit. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate whether the issuer's method to assess its goodwill and intangible assets for impairment was in conformity with FASB ASC Topic 350, Intangibles — Goodwill and Other. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer entered into an agreement with an external party pursuant to which it was to, among other things, make certain advance payments, including common stock and preferred shares, to the external party prior to the completion of the transaction, which occurred after the year under audit. The following deficiency was identified:\n·\nThe firm did not perform any procedures to test the fair value of common stock and preferred shares that had been transferred and recorded as a part of the advance payments, including consideration of certain contrary evidence regarding the trading value of the issuer's common stock. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The issuer entered into an agreement with an external party pursuant to which it was to, among other things, make certain advance payments, including common stock and preferred shares, to the external party prior to the completion of the transaction, which occurred after the year under audit. The following deficiency was identified:\n·\nThe firm did not perform any procedures to test the fair value of common stock and preferred shares that had been transferred and recorded as a part of the advance payments, including consideration of certain contrary evidence regarding the trading value of the issuer's common stock. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer entered into an agreement with an external party pursuant to which it was to, among other things, make certain advance payments, including common stock and preferred shares, to the external party prior to the completion of the transaction, which occurred after the year under audit. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate whether the presentation and disclosure of the advance payments was in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "67", "Description in the Firm's Inspection Report": "The issuer entered into an agreement with an external party pursuant to which it was to, among other things, make certain advance payments, including common stock and preferred shares, to the external party prior to the completion of the transaction, which occurred after the year under audit. The following deficiency was identified:\n·\nThe firm did not evaluate the business purpose (or lack thereof) of the transaction, including whether it may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets. (AS 2401.67)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue pursuant to contracts with new customers. The firm did not perform procedures to evaluate whether these customer contracts met the collectability criteria required to recognize revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue pursuant to contracts with new customers. The firm did not perform procedures to evaluate whether these customer contracts met the collectability criteria required to recognize revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain other revenue pursuant to a contract with an external party through which it agreed to provide services in exchange for noncash consideration. The firm did not perform procedures to evaluate whether the issuer recognized this revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized certain other revenue pursuant to a contract with an external party through which it agreed to provide services in exchange for noncash consideration. The firm did not perform procedures to evaluate whether the issuer recognized this revenue in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence.\nThe firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialist and whether the specialist's findings support or contradict the issuer's rights and obligations related to the consolidation of the VIEs because it did not evaluate the nature of uncertainties described in the legal opinion prepared by the company's specialist and perform additional procedures to address the risks associated with those uncertainties. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence.\nThe firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialist and whether the specialist's findings support or contradict the issuer's rights and obligations related to the consolidation of the VIEs because it did not evaluate the nature of uncertainties described in the legal opinion prepared by the company's specialist and perform additional procedures to address the risks associated with those uncertainties. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. The firm did not perform procedures to test, or test any controls over, the completeness of the system-generated reports from which it made its selections to test certain of these controls. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. The firm did not perform procedures to test, or test any controls over, the completeness of the system-generated reports from which it made its selections to test certain of these controls. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. For one of these controls, the firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. For one of these controls, the firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. For one of these controls, the firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's reviews of revenue and deferred revenue. For one of these controls, the firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of the issuer's review of the annual assessment of real estate investment properties for potential impairment. The firm did not evaluate the review procedures that the control owner(s) 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of the issuer's review of the annual assessment of real estate investment properties for potential impairment. The firm did not evaluate the review procedures that the control owner(s) 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm selected for testing certain other controls that consisted of the issuer's recording and approval of transactions associated with the construction of real estate investment properties. For certain of the controls tested, the firm did not perform procedures to test, or test any controls over, the completeness of system-generated reports from which it made its selections to test these controls. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm selected for testing certain other controls that consisted of the issuer's recording and approval of transactions associated with the construction of real estate investment properties. For one of these controls that included the issuer's review of construction in progress, the firm did not evaluate the review procedures that the control owners 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)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm selected for testing certain other controls that consisted of the issuer's recording and approval of transactions associated with the construction of real estate investment properties. For one of these controls that included the issuer's review of construction in progress, the firm did not evaluate the review procedures that the control owners 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)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Real Estate Investment Properties", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B8", "Description in the Firm's Inspection Report": "The issuer reported real estate investment properties, including properties under development, and performed an annual assessment of the properties for impairment. The following deficiency was identified:\n·\nThe firm did not evaluate whether certain misstatements it identified related to real estate investment properties, including properties under development, should have had an effect on the firm's conclusions about the effectiveness of the issuer's controls over these assets. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "844", "Firm Names": "Moore CPA Limited", "Inspection Year": "2024", "Country": "Hong Kong", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer's reconciliation of related party balances and transactions. The firm did not identify and test any controls over the completeness of a system-generated report used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3686", "Firm Names": "Adeptus Partners LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures related to investment securities required by FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3686", "Firm Names": "Adeptus Partners LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures related to investment securities required by FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3686", "Firm Names": "Adeptus Partners LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Going Concern", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "During the year under audit, the firm identified conditions and events that caused it to believe there could be substantial doubt about the issuer's ability to continue as a going concern for a reasonable period of time and concluded that the substantial doubt was alleviated. The firm did not sufficiently evaluate management's plans, because it did not assess the likelihood that the issuer could obtain additional funding and complete a business combination. (AS 2415.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3686", "Firm Names": "Adeptus Partners LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure related to investment securities required by FASB ASC Topic 825. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3686", "Firm Names": "Adeptus Partners LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "30-Jan-25", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of a disclosure related to investment securities required by FASB ASC Topic 825. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used an information technology (IT) system at one component to initiate, process, and record certain revenue transactions. In its testing of controls over this revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by this IT system. The accuracy and completeness of these data and reports depended on effective IT general controls (ITGCs). As a result of the following deficiencies in the firm's testing of change management ITGCs, the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing two change management controls over this IT system that consisted of the (1) restricting of access to deploy system changes into the production environment to authorized personnel and (2) documentation, review, testing, and approval of system changes prior to their migration into the production environment. The issuer documented the system changes in tickets that were entered into a change ticket tracking system. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to test, or test any controls over, the completeness of the population of changes from which it made its selections for testing these controls, because it limited its procedures to obtaining listings of change tickets from the change ticket tracking system without contemplating potential changes that were not captured in that system. (AS 1105.10)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing two change management controls over this IT system that consisted of the (1) restricting of access to deploy system changes into the production environment to authorized personnel and (2) documentation, review, testing, and approval of system changes prior to their migration into the production environment. The issuer documented the system changes in tickets that were entered into a change ticket tracking system. The following deficiency was identified:\n·\nThe firm did not test an aspect of the first control related to the segregation of duties between system change developers and deployers. (AS 2201.42 and .44)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing two change management controls over this IT system that consisted of the (1) restricting of access to deploy system changes into the production environment to authorized personnel and (2) documentation, review, testing, and approval of system changes prior to their migration into the production environment. The issuer documented the system changes in tickets that were entered into a change ticket tracking system. The following deficiency was identified:\n·\nThe firm did not test an aspect of the first control related to the segregation of duties between system change developers and deployers. (AS 2201.42 and .44)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample sizes the firm used in certain of its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm selected for testing controls over this revenue that consisted of (1) management's review and approval of sales orders created in this IT system and (2) management's review of new prices and changes to existing prices before those prices and changes were uploaded into this IT system. The firm identified deficiencies in the design and operating effectiveness of these controls. The firm identified and tested compensating controls that it believed would mitigate the deficiencies. The firm did not identify that these compensating controls did not address the risks of material misstatement related to inaccurate and unauthorized sales orders and prices related to this revenue. (AS 2201.68)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm did not identify and test any controls that would address risks associated with improper revenue recognition from certain sales. (AS 2201.39)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the accuracy of the fulfillment status in this IT system. (AS 2201.39)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of a sales discounts/rebates analysis workbook and the related journal entry to record the sales discounts/rebates. The firm did not perform sufficient procedures to test the accuracy and completeness of the revenue report, which was used in the operation of this control, because it did not perform procedures to verify that it was a standard report within the scope of the service auditor's report beyond inquires of management. (AS 2201.42)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers (\"\"ASC 606\"\"), because at the time revenue was recognized for certain transactions, the firm did not obtain any evidence that a legally enforceable contract existed or that the performance obligation was satisfied. (AS 2301.08 and .11)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether certain revenue was recognized in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers (\"\"ASC 606\"\"), because at the time revenue was recognized for certain transactions, the firm did not obtain any evidence that a legally enforceable contract existed or that the performance obligation was satisfied. (AS 2301.08 and .11)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer used a different IT system at another component, which was an outsourced application, to initiate, process, and record revenue transactions. The firm inspected the related service auditor's report for this system and noted that the accuracy and completeness of standard reports generated from this system were addressed through certain ITGCs over the system that were tested by the service auditor. The service auditor's report, however, did not specifically identify the standard reports that were addressed through these ITGC's. For certain revenue transactions, invoices were generated and revenue was recognized once the order fulfillment status in the system indicated that the orders had been fulfilled. The following deficiency was identified:\n·\nThe firm did not identify and evaluate a departure from GAAP related to the issuer's recognition of certain revenue. In this instance, the issuer's recognition of revenue appears not to have been in conformity with ASC 606. (AS 2810.30)\nUnrelated to our review, the issuer filed a Form 8-K indicating that its previously issued financial statements and the firm's related audit reports should not be relied upon because of certain material misstatements contained in the financial statements. The issuer corrected the misstatements and reported that its ICFR was not effective. The firm also expressed an adverse opinion on the effectiveness of the issuer's ICFR." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the fair value of the liability, as determined by the company's specialist. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant assumptions the company's specialist used to determine the fair value of the liability. Further, for one quarter tested, the firm did not test an aspect of the control related to the control owner's review of the formulas used in the valuation models prepared by the company's specialist. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the fair value of the liability, as determined by the company's specialist. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain significant assumptions the company's specialist used to determine the fair value of the liability. Further, for one quarter tested, the firm did not test an aspect of the control related to the control owner's review of the formulas used in the valuation models prepared by the company's specialist. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used by the company's specialist to determine the fair value of the liability, as described below. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the valuation of the liability, because the auditor-employed specialist did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used by the company's specialist to determine the fair value of the liability, as described below. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8B", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe auditor-employed specialist did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed and used by the company's specialist, because it limited its procedures to (1) reading the liability valuation report, (2) reading certain analysts' reports, (3) inquiries of management, and (4) performing a sensitivity analysis without evaluating the appropriateness of certain assumptions used in the analysis. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8B", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of a liability. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its report (\"\"liability valuation report\"\"). The firm used an auditor-employed specialist to assist it with testing the valuation of this liability. The following deficiency was identified:\n·\nThe auditor-employed specialist did not perform procedures to evaluate the reasonableness of another significant assumption developed and used by the company's specialist beyond (1) reading the liability valuation report and publicly available information and (2) inquiries of management, the company's specialist, and the issuer's largest shareholder. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the other investments, as presented in a reconciliation schedule, including a comparison of the fair value of these investments to the related investment valuation report and/or other supporting documentation. The firm did not test aspects of the control related to (1) the mathematical accuracy of the supporting documentation used in the operation of the control and (2) agreeing an input used in the investment valuation report to the supporting documentation for one of the other investments. Further, for certain other investments, the firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions used by the company's specialist to determine the fair value of the investments. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the other investments, as presented in a reconciliation schedule, including a comparison of the fair value of these investments to the related investment valuation report and/or other supporting documentation. The firm did not test aspects of the control related to (1) the mathematical accuracy of the supporting documentation used in the operation of the control and (2) agreeing an input used in the investment valuation report to the supporting documentation for one of the other investments. Further, for certain other investments, the firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain assumptions used by the company's specialist to determine the fair value of the investments. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reliability of external historical financial information for the investee it used to evaluate the reasonableness of an assumption used by the auditor-employed specialist to develop an expectation of the fair value of an aspect of one of the other investments. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reliability of external historical financial information for the investee it used to evaluate the reasonableness of an assumption used by the auditor-employed specialist to develop an expectation of the fair value of an aspect of one of the other investments. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nWhen testing the issuer's process, the firm did not perform procedures to evaluate the reasonableness of a significant assumption used by the company's specialist to determine the fair value of an aspect of one of the other investments at the inception date. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8B", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nWhen testing the issuer's process, the firm did not sufficiently evaluate the work of the auditor- employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the reasonableness of a significant assumption developed and used by the company's specialist to determine the fair value of certain other investments. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nWhen testing the issuer's process, the firm did not sufficiently evaluate the work of the auditor- employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the reasonableness of a significant assumption developed and used by the company's specialist to determine the fair value of certain other investments. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Investments", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain other investments. The company's specialist used various inputs and assumptions, some of which the engagement team considered to be significant, to prepare the various valuation models included in its reports (\"\"investment valuation reports\"\"). The firm used an auditor-employed specialist to assist in testing the valuation of these other investments. The firm's approach to test the valuation of these other investments was to test the issuer's process. For one such investment, the auditor-employed specialist also developed an expectation of the fair value of an aspect of the investment. The following deficiency was identified:\n·\nWhen testing the issuer's process, the firm did not sufficiently evaluate the work of the auditor- employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the reasonableness of a significant assumption developed and used by the company's specialist to determine the fair value of certain other investments. (AS 1105.A8b; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported goodwill at several reporting units and evaluated certain reporting units for impairment using a discounted cash flow model (\"\"DCF model\"\"), which relied on various assumptions. The firm's approach to substantively test the issuer's goodwill impairment analysis for one reporting unit was to test the issuer's process. The firm also developed an independent expectation of the issuer's annual revenue growth rates for this reporting unit and compared those expectations to the annual revenue growth rate assumptions used by the issuer in the DCF model. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the goodwill impairment analysis for each reporting unit. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain assumptions used in the goodwill impairment analysis for certain reporting units. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported goodwill at several reporting units and evaluated certain reporting units for impairment using a discounted cash flow model (\"\"DCF model\"\"), which relied on various assumptions. The firm's approach to substantively test the issuer's goodwill impairment analysis for one reporting unit was to test the issuer's process. The firm also developed an independent expectation of the issuer's annual revenue growth rates for this reporting unit and compared those expectations to the annual revenue growth rate assumptions used by the issuer in the DCF model. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the goodwill impairment analysis for each reporting unit. The firm did not evaluate the specific review procedures that the control owners performed to assess the reasonableness of certain assumptions used in the goodwill impairment analysis for certain reporting units. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "", "Finding Count": "20", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported goodwill at several reporting units and evaluated certain reporting units for impairment using a discounted cash flow model (\"\"DCF model\"\"), which relied on various assumptions. The firm's approach to substantively test the issuer's goodwill impairment analysis for one reporting unit was to test the issuer's process. The firm also developed an independent expectation of the issuer's annual revenue growth rates for this reporting unit and compared those expectations to the annual revenue growth rate assumptions used by the issuer in the DCF model. The following deficiency was identified:\n·\nFor the one reporting unit referred to above, the firm did not perform sufficient procedures to evaluate the reasonableness of the annual revenue growth assumptions, which the firm considered to be significant assumptions, used by the issuer in its goodwill impairment analysis, because the firm did not demonstrate that it had a reasonable basis for (1) selecting the comparable companies it used to develop its independent expectation of the average annual revenue growth rate over a six-year period and (2) assuming that the ratio of advertising expenses to revenue (\"\"advertising ratio\"\") generated would be predictive of the revenue growth rate for 2023. Further, the firm did not perform procedures to evaluate differences between the (1) annual revenue growth rate assumptions used by the issuer and the compound annual revenue growth rates for the industry beyond determining the market share the issuer would need to capture to achieve its revenue growth rate for 2023 and (2) industry advertising ratio and the advertising ratio used by the issuer. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "21", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nThe firm did not test aspects of the control related to management's review of (1) one of the inputs used in the valuation model and (2) the mathematical accuracy of the changes to the fair value of the debt. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "21", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nThe firm did not test aspects of the control related to management's review of (1) one of the inputs used in the valuation model and (2) the mathematical accuracy of the changes to the fair value of the debt. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "22", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nThe firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain other inputs used in the valuation model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "22", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nThe firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of certain other inputs used in the valuation model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "23", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nFor one of the quarters tested, the firm did not (1) agree the inputs used in the valuation model to the inputs provided by the company's specialist and (2) evaluate the specific review procedures that the control owner performed to assess the reasonableness of one such input. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "", "Finding Count": "23", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain of the issuer's debt. The company's specialist prepared a valuation model using inputs determined by the specialist, and the issuer used the information provided by the specialist to estimate the changes to the fair value of the debt. The firm selected for testing a control that consisted of management's review of the inputs used by the company's specialist in the valuation model for reasonableness. The following deficiency was identified:\n·\nFor one of the quarters tested, the firm did not (1) agree the inputs used in the valuation model to the inputs provided by the company's specialist and (2) evaluate the specific review procedures that the control owner performed to assess the reasonableness of one such input. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that included management's review of (1) the cost assumptions used in the financial budget and (2) adjustments made to the financial budget to derive the budget model. The firm did not (1) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of certain cost assumptions used in the financial budget and (2) test an aspect of the control related to the adjustments made to the financial budget when deriving the budget model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that included management's review of (1) the cost assumptions used in the financial budget and (2) adjustments made to the financial budget to derive the budget model. The firm did not (1) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of certain cost assumptions used in the financial budget and (2) test an aspect of the control related to the adjustments made to the financial budget when deriving the budget model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that included management's review of (1) the cost assumptions used in the financial budget and (2) adjustments made to the financial budget to derive the budget model. The firm did not (1) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of certain cost assumptions used in the financial budget and (2) test an aspect of the control related to the adjustments made to the financial budget when deriving the budget model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that included management's review of (1) the cost assumptions used in the financial budget and (2) adjustments made to the financial budget to derive the budget model. The firm did not (1) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of certain cost assumptions used in the financial budget and (2) test an aspect of the control related to the adjustments made to the financial budget when deriving the budget model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of certain inputs used in the DCF model. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of certain inputs used in the DCF model. The firm did not identify and test any controls over the accuracy and completeness of certain data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not assess the effect of the issuer not evaluating certain risk factors applied to the inputs on the control's ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not assess the effect of the issuer not evaluating certain risk factors applied to the inputs on the control's ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not identify and evaluate a departure from IFRS related to the issuer incorrectly disclosing that it used a pre-tax discount rate to estimate the present value of the future cash flows in the DCF model. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not identify and evaluate a departure from IFRS related to the issuer incorrectly disclosing that it used a pre-tax discount rate to estimate the present value of the future cash flows in the DCF model. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not identify and evaluate a departure from IFRS related to the issuer incorrectly disclosing that it used a pre-tax discount rate to estimate the present value of the future cash flows in the DCF model. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm did not identify and evaluate a departure from IFRS related to the issuer incorrectly disclosing that it used a pre-tax discount rate to estimate the present value of the future cash flows in the DCF model. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm used the financial budget to substantively test certain other liabilities but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of the financial budget. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer identified an indicator of potential impairment for certain long-lived assets and performed an impairment analysis to evaluate the assets for impairment. As part of its impairment analysis, the issuer estimated the recoverable amount of the cash-generating unit using a DCF model, which included cash flows from another model (\"\"budget model\"\") that were derived from the issuer's financial budget and adjusted using certain other information. The issuer used a post-tax discount rate to estimate the present value of the future cash flows in the DCF model. The issuer also used the financial budget to estimate the valuation of certain other liabilities. The following deficiency was identified:\n·\nThe firm used the financial budget to substantively test certain other liabilities but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of the financial budget. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain intangible assets acquired in a business combination. The following deficiency was identified:\n·\nThe firm selected for testing controls that consisted of management's review of certain information prepared by the issuer and other data inputs, all of which were used by the company's specialist to determine the fair value of certain intangible assets acquired in the business combination. The firm did not test an aspect of the controls related to the accuracy of certain data that the issuer provided to the company's specialist. Further, with respect to certain assumptions in the information used by the company's specialist, the firm did not (1) evaluate whether the thresholds used by the control owners to evaluate the reasonableness of certain assumptions were sufficiently precise to detect misstatements that could be material, (2) evaluate the specific review procedures that the control owners performed to assess the reasonableness of those assumptions, and (3) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of another assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain intangible assets acquired in a business combination. The following deficiency was identified:\n·\nThe firm selected for testing controls that consisted of management's review of certain information prepared by the issuer and other data inputs, all of which were used by the company's specialist to determine the fair value of certain intangible assets acquired in the business combination. The firm did not test an aspect of the controls related to the accuracy of certain data that the issuer provided to the company's specialist. Further, with respect to certain assumptions in the information used by the company's specialist, the firm did not (1) evaluate whether the thresholds used by the control owners to evaluate the reasonableness of certain assumptions were sufficiently precise to detect misstatements that could be material, (2) evaluate the specific review procedures that the control owners performed to assess the reasonableness of those assumptions, and (3) evaluate the criteria that the control owners used to identify matters for follow-up when evaluating the reasonableness of another assumption. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain intangible assets acquired in a business combination. The following deficiency was identified:\n· The firm did not perform any procedures to test, or test any controls over, the accuracy of certain data that the issuer provided to the company's specialist and used by the specialist to develop an assumption that was then used by the specialist to determine the fair value of certain intangible assets acquired in the business combination. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of certain intangible assets acquired in a business combination. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond documenting that certain disclosures were not material, to evaluate whether the issuer made all required disclosures related to the business combination in conformity with FASB ASC Topic 805, Business Combinations. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash Flows", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of the statement of cash flows. The firm did not assess the effect of the issuer not evaluating the accuracy and completeness of certain data used in the operation of the control on the control's ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the appropriateness of the ACL for certain loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the (1) appropriateness of the method(s) used by the company's specialists to determine the value of the collateral, (2) reasonableness of the assumptions used by the company's specialists to determine the value of the collateral, and (3) reasonableness of the collateral adjustment percentage used in the DCF model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of the appropriateness of the ACL for certain loans. The firm did not evaluate the specific review procedures that the control owner performed to assess the (1) appropriateness of the method(s) used by the company's specialists to determine the value of the collateral, (2) reasonableness of the assumptions used by the company's specialists to determine the value of the collateral, and (3) reasonableness of the collateral adjustment percentage used in the DCF model. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the value of the collateral, as determined by the company's specialists, beyond reading the valuation reports prepared by the company's specialists and assessing the knowledge, skills, and ability of the specialists. (AS 1105.A4 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For certain loans, the issuer estimated the allowance for credit losses (\"\"ACL\"\") by comparing the respective loan's outstanding balance to the output of a DCF model, which included various assumptions. One of the significant assumptions used in the DCF model was dependent on another significant assumption, which was the value of the underlying collateral for the respective loans, as determined by various external specialists engaged by the issuer. The firm's approach to test the ACL for these loans was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the collateral adjustment percentage, which the firm considered to be a significant assumption, used in the DCF model, beyond comparing the collateral adjustment percentage to the issuer's policy of acceptable collateral ranges. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of an intangible asset acquired in a business combination, and the firm used an auditor-employed specialist to assist it with testing the valuation of this intangible asset. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist as it did not identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the valuation of the intangible asset, because the auditor-employed specialist did not perform sufficient procedures to evaluate the work of the company's specialist, as described below. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of an intangible asset acquired in a business combination, and the firm used an auditor-employed specialist to assist it with testing the valuation of this intangible asset. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist as it did not identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence regarding the valuation of the intangible asset, because the auditor-employed specialist did not perform sufficient procedures to evaluate the work of the company's specialist, as described below. (AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of an intangible asset acquired in a business combination, and the firm used an auditor-employed specialist to assist it with testing the valuation of this intangible asset. The following deficiency was identified:\n·\nThe auditor-employed specialist did not perform procedures to evaluate the relevance and reliability of data from external sources that the company's specialist used to develop an assumption that was then used to determine the fair value of the intangible asset. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "85", "Firm Names": "KPMG LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Business Combinations", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to assist in determining the fair value of an intangible asset acquired in a business combination, and the firm used an auditor-employed specialist to assist it with testing the valuation of this intangible asset. The following deficiency was identified:\n·\nThe auditor-employed specialist did not perform procedures to evaluate the reasonableness of a significant assumption developed and used by the company's specialist to determine the fair value of the intangible asset, beyond reading the valuation report prepared by the company's specialist and identifying qualitative factors that could result in a significant difference between the assumption and the range for that assumption identified by the company's specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· For certain controls over the recording of revenue that consisted of matching information from the invoice to other data, the firm did not directly test the operating effectiveness of the controls, because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· For certain controls over the recording of revenue that consisted of matching information from the invoice to other data, the firm did not directly test the operating effectiveness of the controls, because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B9", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· For certain controls over the recording of revenue that consisted of matching information from the invoice to other data, the firm did not directly test the operating effectiveness of the controls, because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· For certain management review controls, the firm did not evaluate the specific review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· For certain management review controls, the firm did not evaluate the specific review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing certain controls over revenue. The following deficiency was identified:\n· The firm did not perform procedures to test, or identify and test any controls over, the accuracy and completeness of certain system-generated reports it used to make its selections for testing the operating effectiveness of certain controls over revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe sample size the firm used in its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Asset", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced data and/or reports used in the operation of certain controls over a certain asset. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control over the initiation and approval of wire transfers. The firm did not identify and test any controls over segregation of duties between the initiator, the approver, and the sender of wire transfers. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm selected for testing a control over the initiation and approval of wire transfers. The firm did not identify and test any controls over segregation of duties between the initiator, the approver, and the sender of wire transfers. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm tested certain ITGCs over the issuer's logical access and change management for the issuer's system. The following deficiency was identified:\n ·\nThe firm did not sufficiently evaluate the specific procedures that the control owners performed to determine whether to grant role access to users or whether the granted role access continued to be appropriate because its procedures to test the design and operating effectiveness did not include any procedures related to assessing the appropriateness of the roles configured within the system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm tested certain ITGCs over the issuer's logical access and change management for the issuer's system. The following deficiency was identified:\n ·\nThe firm did not sufficiently evaluate the specific procedures that the control owners performed to determine whether to grant role access to users or whether the granted role access continued to be appropriate because its procedures to test the design and operating effectiveness did not include any procedures related to assessing the appropriateness of the roles configured within the system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm tested certain ITGCs over the issuer's logical access and change management for the issuer's system. The following deficiency was identified:\n·\nThe firm did not sufficiently test the design and operating effectiveness of certain ITGCs related to change management because its procedures to test the completeness of the population of changes were limited to observing the generation of change information from an application outside the issuer's primary system and obtaining an administrator activity log. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Information Technology General Controls", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "As a result of the deficiencies in the firm's ITGC testing, the firm did not sufficiently test whether the information technology (IT) automated application controls and the IT-dependent manual controls it selected for testing over revenue and a certain asset were effective, as each control was dependent on the effectiveness of ITGCs. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain review controls over revenue. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the appropriateness of the (1) timing of revenue recognition and (2) price changes from the issuer's system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain review controls over revenue. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the appropriateness of the (1) timing of revenue recognition and (2) price changes from the issuer's system. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in its substantive procedures to test certain revenue was too small to provide sufficient appropriate audit evidence because the procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain review controls over a certain asset. The firm did not evaluate the specific review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "207", "Firm Names": "BPM LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Asset", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain review controls over a certain asset. The firm did not evaluate the specific review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "344", "Firm Names": "Wipfli LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether all performance obligations were appropriately identified because it did not (1) perform procedures to identify and review all customer agreements/contracts that may contain promises to provide distinct goods or services and (2) evaluate whether any such promises identified should be accounted for as separate performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "344", "Firm Names": "Wipfli LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to evaluate whether all performance obligations were appropriately identified because it did not (1) perform procedures to identify and review all customer agreements/contracts that may contain promises to provide distinct goods or services and (2) evaluate whether any such promises identified should be accounted for as separate performance obligations. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "344", "Firm Names": "Wipfli LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain system-generated data it used to substantively test revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "344", "Firm Names": "Wipfli LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Participant and Employer Contributions", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "To test rollover contributions, the firm selected certain rollover contributions that met specific criteria to evaluate whether they were appropriately recognized in accordance with the terms of the plan document. The firm did not perform any substantive procedures to test the remaining population of rollover contributions to address the assessed risk of material misstatement. (AS 1105.27; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "344", "Firm Names": "Wipfli LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Participant and Employer Contributions", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test rollover contributions, the firm selected certain rollover contributions that met specific criteria to evaluate whether they were appropriately recognized in accordance with the terms of the plan document. The firm did not perform any substantive procedures to test the remaining population of rollover contributions to address the assessed risk of material misstatement. (AS 1105.27; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "673", "Firm Names": "Richey, May & Co., LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ALL included a qualitative reserve based on various qualitative factors. The following deficiency was identified:\n·\nThe firm selected for testing two review controls over the issuer's determination of the qualitative reserve. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions used to develop the qualitative factors used in determining the qualitative reserve. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ALL included a qualitative reserve based on various qualitative factors. The following deficiency was identified:\n·\nThe firm selected for testing two review controls over the issuer's determination of the qualitative reserve. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the assumptions used to develop the qualitative factors used in determining the qualitative reserve. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's ALL included a qualitative reserve based on various qualitative factors. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate whether the issuer had a reasonable basis for the significant assumptions used to determine the qualitative reserve, beyond obtaining and reading an issuer-prepared narrative. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer monitored loan delinquency and used that information to identify potential problem loans for impairment evaluation. The firm did not identify and test any controls over the identification and classification of past due loans within the issuer's loan system. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of potential other-than-temporary-impairment on available-for-sale investment securities. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of potential other-than-temporary-impairment on available-for-sale investment securities. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate a departure from GAAP related to the issuer's recording of certain available-for-sale investment securities at par value rather than fair value in accordance with FASB ASC Topic 320, Investments — Debt Securities, because it did not evaluate whether the uncorrected misstatement was material taking into account relevant quantitative and qualitative considerations in materiality judgments. (AS 2810.17, .30, and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate a departure from GAAP related to the issuer's recording of certain available-for-sale investment securities at par value rather than fair value in accordance with FASB ASC Topic 320, Investments — Debt Securities, because it did not evaluate whether the uncorrected misstatement was material taking into account relevant quantitative and qualitative considerations in materiality judgments. (AS 2810.17, .30, and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not sufficiently evaluate a departure from GAAP related to the issuer's recording of certain available-for-sale investment securities at par value rather than fair value in accordance with FASB ASC Topic 320, Investments — Debt Securities, because it did not evaluate whether the uncorrected misstatement was material taking into account relevant quantitative and qualitative considerations in materiality judgments. (AS 2810.17, .30, and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm engaged a specialist to evaluate the fair value hierarchy classifications for the issuer's available-for-sale investment securities. The firm did not perform additional procedures, beyond consideration of directional risk, or request that the auditor-engaged specialist perform additional procedures, to address the specialist's findings that appeared to contradict the issuer's presentation of these investment securities within the fair value hierarchy. (AS 1210.12; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm engaged a specialist to evaluate the fair value hierarchy classifications for the issuer's available-for-sale investment securities. The firm did not perform additional procedures, beyond consideration of directional risk, or request that the auditor-engaged specialist perform additional procedures, to address the specialist's findings that appeared to contradict the issuer's presentation of these investment securities within the fair value hierarchy. (AS 1210.12; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified a deficiency related to the ability of individuals to post journal entries without review or approval. The firm tested two controls that it believed would compensate for this deficiency but did not identify that these controls did not address the risk of material misstatement related to unapproved journal entries. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries, and obtained a listing of all journal entries that met the criteria. The firm selected for testing certain journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test journal entries, because it did not have an appropriate rationale for limiting its procedures to certain journal entries that met the fraud criteria. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at a location. The following deficiency was identified:\n·\nThe firm did not identify and test any controls that addressed whether all of the inventory items were assigned a frequency to be counted and the appropriateness of the assignment. (AS 2201.39)\nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at a location. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the issuer's review of cycle count results, including any related inventory adjustments. (AS 2201.39)\nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at a location. The following deficiency was identified:\n·\nDue to the deficiencies described, the firm did not obtain sufficient appropriate audit evidence that the cycle-count procedures the issuer used for this inventory were sufficiently reliable to produce results substantially the same as those that would have been obtained by a count of all items each year. (AS 2510.11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nThe firm identified and tested various review controls that it believed would mitigate the deficiencies. The firm did not perform procedures to evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and the procedures to determine whether those items were appropriately resolved. (AS 2201.68)\nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nThe firm identified and tested various review controls that it believed would mitigate the deficiencies. The firm did not identify and test any controls over the accuracy and completeness of the information used in these reviews. (AS 2201.68)\nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report.\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor one of these locations, the firm attended the cycle counts at year end and performed test count procedures. The sample size the firm used for its test count procedures was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor one of these locations, the firm attended the cycle counts at year end and performed test count procedures. The sample size the firm used for its test count procedures was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor one of these locations, the firm attended the cycle counts at year end and performed test count procedures. The sample size the firm used for its test count procedures was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor one of these locations, the firm attended the cycle counts at year end and performed test count procedures. The sample size the firm used for its test count procedures was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor two of these locations, the firm did not perform any substantive procedures to test the existence of inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer performed cycle counts of inventory at other locations. The firm identified deficiencies in the design and operating effectiveness of these controls at year end. The following deficiency was identified:\n·\nFor two of these locations, the firm did not perform any substantive procedures to test the existence of inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls for certain locations where the issuer performed full physical inventory observations. (AS 2201.39) \nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For one of these locations, the firm observed the physical inventory counts and selected a sample of inventory items for testing. The sample size the firm used was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "For one of these locations, the firm observed the physical inventory counts and selected a sample of inventory items for testing. The sample size the firm used was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "For one of these locations, the firm observed the physical inventory counts and selected a sample of inventory items for testing. The sample size the firm used was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "For one of these locations, the firm observed the physical inventory counts and selected a sample of inventory items for testing. The sample size the firm used was too small to provide sufficient appropriate audit evidence over the existence of inventory because the firm did not take into account the relevant factors in determining its sample size, including tolerable misstatement for the population, the allowable risk of incorrect acceptance, and the characteristics of the population. (AS 2315.16, .19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For one other location, the firm did not perform any substantive procedures to test the existence of inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "For one other location, the firm did not perform any substantive procedures to test the existence of inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of inventory reserves. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the inventory reserve. (AS 2201.42 and .44) \nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of inventory reserves. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the inventory reserve. (AS 2201.42 and .44) \nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the review of inventory reserves. The firm did not identify and test any controls over the accuracy and completeness of information used in the operation of this control (AS 2201.39)\nUnrelated to our review, the issuer reevaluated its controls over inventory and concluded that material weaknesses existed that had not been previously identified. The issuer subsequently reflected these material weaknesses 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 and reissued its report." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing inventory reserves was to test the issuer's process used to develop the reserve. The firm did not perform procedures to test, or identify and test any controls over, the completeness of certain information it used to substantively test the inventory reserve. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "14", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing inventory reserves was to test the issuer's process used to develop the reserve. The firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of significant assumptions used to determine the inventory reserve. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used certain qualitative factors to determine the qualitative component of the ALL. The firm's approach for substantively testing the qualitative component of the ALL was to test the issuer's process and develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not evaluate whether the issuer had a reasonable basis for certain significant assumptions related to basis points assigned to qualitative factors used to determine the qualitative component of the ALL. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer used certain qualitative factors to determine the qualitative component of the ALL. The firm's approach for substantively testing the qualitative component of the ALL was to test the issuer's process and develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not perform any procedures to demonstrate it had a reasonable basis for the assumptions it used in determining its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used loan risk ratings to estimate its ACL. The firm did not identify and test any controls that addressed the reasonableness of loan risk ratings. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Control Deficiencies", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm identified control deficiencies related to significant accounts and in areas of significant risk. The firm did not sufficiently evaluate the severity of these control deficiencies, because it did not evaluate the magnitude of the potential misstatements resulting from the deficiencies. (AS 2201.62)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The firm engaged a specialist to evaluate the fair value hierarchy classifications for the issuer's investment securities. The firm did not perform procedures, beyond quantifying the differences in fair value, or request that the auditor-engaged specialist perform additional procedures, to address the specialist's findings that appeared to contradict the issuer's presentation of these investment securities within the fair value hierarchy. (AS 1210.12; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm engaged a specialist to evaluate the fair value hierarchy classifications for the issuer's investment securities. The firm did not perform procedures, beyond quantifying the differences in fair value, or request that the auditor-engaged specialist perform additional procedures, to address the specialist's findings that appeared to contradict the issuer's presentation of these investment securities within the fair value hierarchy. (AS 1210.12; AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries, because it limited its procedures to evaluating the journal entry descriptions. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to develop estimates related to certain long-lived assets. The firm's approach for substantively testing this estimate was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform any procedures to test the accuracy and completeness of certain issuer-produced data, and evaluate the relevance and reliability of certain data from external sources, that the company's specialist used. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to develop estimates related to certain long-lived assets. The firm's approach for substantively testing this estimate was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to develop estimates related to certain long-lived assets. The firm's approach for substantively testing this estimate was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to develop estimates related to certain long-lived assets. The firm's approach for substantively testing this estimate was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of certain components of other significant assumptions developed by the issuer and used by the company's specialist. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "F", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The issuer engaged an external specialist to develop estimates related to certain long-lived assets. The firm's approach for substantively testing this estimate was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform any procedures, beyond inquiry, to evaluate whether the methods used by the company's specialist were appropriate under the circumstances. (AS 1105.A8c)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported an ACL that included both a quantitative and qualitative component. The issuer used certain qualitative factors, including assigned loan risk grades, to determine the qualitative component of the ACL. The following deficiency was identified:\n·\nThe firm selected for testing a review control over the qualitative reserve. The firm did not evaluate the specific review procedures the control owners performed to evaluate the reasonableness of the basis points applied to the qualitative factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer reported an ACL that included both a quantitative and qualitative component. The issuer used certain qualitative factors, including assigned loan risk grades, to determine the qualitative component of the ACL. The following deficiency was identified:\n·\nThe firm selected for testing a review control over the qualitative reserve. The firm did not evaluate the specific review procedures the control owners performed to evaluate the reasonableness of the basis points applied to the qualitative factors. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer reported an ACL that included both a quantitative and qualitative component. The issuer used certain qualitative factors, including assigned loan risk grades, to determine the qualitative component of the ACL. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of the issuer's review of loans, including a review of the reasonableness of assigned loan risk grades. This control included a determination of which loans would be subject to a review of the assigned loan risk grades. The firm did not assess the effect of the issuer excluding certain loans from review of the assigned loan risk grades on the control's ability to effectively prevent or detect a material misstatement. (AS 2201.42)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported an ACL that included both a quantitative and qualitative component. The issuer used certain qualitative factors, including assigned loan risk grades, to determine the qualitative component of the ACL. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate whether the issuer had a reasonable basis for the significant assumptions related to basis points applied to the qualitative factors, beyond obtaining and reading an issuer-prepared narrative. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "G", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported an ACL that included both a quantitative and qualitative component. The issuer used certain qualitative factors, including assigned loan risk grades, to determine the qualitative component of the ACL. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of a significant assumption used to develop the quantitative component. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "H", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used loan risk ratings to estimate its ACL. The firm did not identify and test any controls over the reasonableness of loan risk ratings. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "686", "Firm Names": "Forvis Mazars, LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "I", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the accuracy and completeness of certain issuer-produced reports, beyond testing their mathematical accuracy, that the issuer used to identify performance obligations and allocate transaction prices to those obligations and the firm used in its substantive procedures. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer records multiple types of revenue. \nFor one type of revenue, the firm compared issuer revenue information to customer sales contracts. The firm did not perform procedures to evaluate whether (1) the issuer met its performance obligations before revenue was recognized; and (2) the method used to recognize revenue for one contract was appropriate. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer records multiple types of revenue. \nFor one type of revenue, the firm compared issuer revenue information to customer sales contracts. The firm did not perform procedures to evaluate whether (1) the issuer met its performance obligations before revenue was recognized; and (2) the method used to recognize revenue for one contract was appropriate. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer records multiple types of revenue. For another type of revenue, the firm did not perform any procedures to test the revenue, beyond agreeing revenue from three selected locations to an issuer-prepared schedule. (AS 2301.08 and .11)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer records multiple types of revenue. For another type of revenue, the firm did not perform any procedures to test the revenue, beyond agreeing revenue from three selected locations to an issuer-prepared schedule. (AS 2301.08 and .11)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Uncorrected Misstatements", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm identified unresolved differences related to revenue and intangible assets. The firm did not perform procedures to (1) address these identified differences and (2) accumulate these differences to evaluate whether they were material, individually or in combination with other misstatements, even though the firm had not designated an amount below which misstatements are clearly trivial and do not need to be accumulated. (AS 2810.10 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Uncorrected Misstatements", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm identified unresolved differences related to revenue and intangible assets. The firm did not perform procedures to (1) address these identified differences and (2) accumulate these differences to evaluate whether they were material, individually or in combination with other misstatements, even though the firm had not designated an amount below which misstatements are clearly trivial and do not need to be accumulated. (AS 2810.10 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the valuation of certain significant accounts. (AS 2501.07)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the reliability of information used by the firm in its testing of the valuation of a significant account. (AS 1105.04 and .06)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the reliability of information used by the firm in its testing of the valuation of a significant account. (AS 1105.04 and .06)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate the appropriateness of the issuer’s accounting for and presentation and disclosure of these accounts. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not evaluate the appropriateness of the issuer’s accounting for and presentation and disclosure of these accounts. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the existence, completeness, and rights and obligations for these accounts beyond confirming certain information with external parties. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the existence, completeness, and rights and obligations for these accounts beyond confirming certain information with external parties. (AS 2301.08 and .11)\nIn connection with our review, the issuer reevaluated its accounting for and disclosure of certain significant accounts and determined that misstatements existed that had not been previously identified. The issuer did not file an amended Form 10-K or Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these misstatements in a subsequent filing by revising the accounting disclosure." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "822", "Firm Names": "Michael T. Studer CPA P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to identify and select journal entries and other adjustments for testing to address the potential for material misstatement due to fraud. (AS 2401.58)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and long-lived assets. The issuer outsourced its IT operations to a third-party service organization, including the operation of certain IT automated controls (\"\"ITACs\"\"). The transaction data processed through these IT systems, and the IT systems themselves, which were maintained by the service organization, were owned by the issuer.\nThe firm selected for testing various ITACs over certain revenue and long-lived assets. The firm used the work of the service organization's auditor (\"\"service auditor\"\") as evidence of the design and operating effectiveness of these ITACs whereby the firm provided guidance to the service auditor related to the testing of these ITACs, and the firm obtained the service auditor's report, which described the service auditor's testing procedures and results. The firm did not perform sufficient procedures to test the design and operating effectiveness of these ITACs because the firm did not identify that the service auditor had not performed procedures to (1) test the design of these ITACs and (2) evaluate program customizations to support the use of a \"\"test of one\"\" approach to test the operating effectiveness of these ITACs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and long-lived assets. The issuer outsourced its IT operations to a third-party service organization, including the operation of certain IT automated controls (\"\"ITACs\"\"). The transaction data processed through these IT systems, and the IT systems themselves, which were maintained by the service organization, were owned by the issuer.\nThe firm selected for testing various ITACs over certain revenue and long-lived assets. The firm used the work of the service organization's auditor (\"\"service auditor\"\") as evidence of the design and operating effectiveness of these ITACs whereby the firm provided guidance to the service auditor related to the testing of these ITACs, and the firm obtained the service auditor's report, which described the service auditor's testing procedures and results. The firm did not perform sufficient procedures to test the design and operating effectiveness of these ITACs because the firm did not identify that the service auditor had not performed procedures to (1) test the design of these ITACs and (2) evaluate program customizations to support the use of a \"\"test of one\"\" approach to test the operating effectiveness of these ITACs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and long-lived assets. The issuer outsourced its IT operations to a third-party service organization, including the operation of certain IT automated controls (\"\"ITACs\"\"). The transaction data processed through these IT systems, and the IT systems themselves, which were maintained by the service organization, were owned by the issuer.\nThe firm selected for testing various ITACs over certain revenue and long-lived assets. The firm used the work of the service organization's auditor (\"\"service auditor\"\") as evidence of the design and operating effectiveness of these ITACs whereby the firm provided guidance to the service auditor related to the testing of these ITACs, and the firm obtained the service auditor's report, which described the service auditor's testing procedures and results. The firm did not perform sufficient procedures to test the design and operating effectiveness of these ITACs because the firm did not identify that the service auditor had not performed procedures to (1) test the design of these ITACs and (2) evaluate program customizations to support the use of a \"\"test of one\"\" approach to test the operating effectiveness of these ITACs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and long-lived assets. The issuer outsourced its IT operations to a third-party service organization, including the operation of certain IT automated controls (\"\"ITACs\"\"). The transaction data processed through these IT systems, and the IT systems themselves, which were maintained by the service organization, were owned by the issuer.\nThe firm selected for testing various ITACs over certain revenue and long-lived assets. The firm used the work of the service organization's auditor (\"\"service auditor\"\") as evidence of the design and operating effectiveness of these ITACs whereby the firm provided guidance to the service auditor related to the testing of these ITACs, and the firm obtained the service auditor's report, which described the service auditor's testing procedures and results. The firm did not perform sufficient procedures to test the design and operating effectiveness of these ITACs because the firm did not identify that the service auditor had not performed procedures to (1) test the design of these ITACs and (2) evaluate program customizations to support the use of a \"\"test of one\"\" approach to test the operating effectiveness of these ITACs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test certain revenue because the firm did not subject all relevant revenue transactions to these procedures, as it did not compile a complete population of transactions from which it made its selections for testing, and the firm did not perform any other procedures to test the remaining revenue transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1437", "Firm Names": "Ernst & Young Han Young", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to test certain revenue because the firm did not subject all relevant revenue transactions to these procedures, as it did not compile a complete population of transactions from which it made its selections for testing, and the firm did not perform any other procedures to test the remaining revenue transactions. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1101", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2110", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "57", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2415", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2747", "Firm Names": "JTC Fair Song CPA Firm", "Inspection Year": "2024", "Country": "China", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts and Disclosures", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not plan and perform an audit that provided a reasonable basis for its audit opinion on the issuer's financial statements because it limited its procedures to establishing a materiality level for the financial statements, certain risk assessment procedures, confirmation of cash and related party transactions, obtaining letters from creditors confirming they would not demand payment until such time when the issuer had sufficient resources to make payment, and obtaining certain issuer-prepared schedules. (AS 1101.03; AS 1105.04; AS 2101.08 and .10; AS 2110.04; AS 2301.08; AS 2401.57; AS 2410.03; AS 2415.03; AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of the issuer's review of the fair value of certain assets. The firm identified a deficiency in the operating effectiveness of this control. The firm identified and tested compensating controls that it believed would mitigate this deficiency. The firm did not identify that these other controls were not designed to address whether these assets were appropriately recorded at fair value. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to test the fair value of certain of these assets, which was determined by the company's specialist. The auditor-employed specialist's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that it did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist, (2) evaluate whether the methods used by the company's specialist were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, and (3) test the accuracy and/or completeness of certain issuer-produced data used by the company's specialist. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.A8a, .A8b, and .A8c; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to test the fair value of certain of these assets, which was determined by the company's specialist. The auditor-employed specialist's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that it did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist, (2) evaluate whether the methods used by the company's specialist were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, and (3) test the accuracy and/or completeness of certain issuer-produced data used by the company's specialist. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.A8a, .A8b, and .A8c; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8c", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to test the fair value of certain of these assets, which was determined by the company's specialist. The auditor-employed specialist's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that it did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist, (2) evaluate whether the methods used by the company's specialist were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, and (3) test the accuracy and/or completeness of certain issuer-produced data used by the company's specialist. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.A8a, .A8b, and .A8c; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to test the fair value of certain of these assets, which was determined by the company's specialist. The auditor-employed specialist's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that it did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist, (2) evaluate whether the methods used by the company's specialist were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, and (3) test the accuracy and/or completeness of certain issuer-produced data used by the company's specialist. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.A8a, .A8b, and .A8c; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5270", "Firm Names": "Grant Thornton Auditores Independentes Ltda", "Inspection Year": "2024", "Country": "Brazil", "Global Network": "Grant Thornton International Limited", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to test the fair value of certain of these assets, which was determined by the company's specialist. The auditor-employed specialist's approach for substantively testing the fair value of these assets was to test the issuer's process. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that it did not (1) evaluate the reasonableness of the significant assumptions developed by the company's specialist, (2) evaluate whether the methods used by the company's specialist were appropriate under the circumstances, taking into account the requirements of the applicable financial reporting framework, and (3) test the accuracy and/or completeness of certain issuer-produced data used by the company's specialist. The firm did not perform additional procedures, or request the auditor-employed specialist to perform additional procedures, to address these issues. (AS 1105.A8a, .A8b, and .A8c; AS 1201.C6 and .C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6722", "Firm Names": "SRCO, C.P.A., Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Share-Based Compensation", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recorded share-based compensation expense. The firm did not evaluate whether the grant date used by the issuer to measure the share-based compensation was in conformity with FASB ASC Topic 718, Compensation—Stock Compensation. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or identify and test any controls over, the completeness of a report from which it made its selections to test two types of revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm selected key item transactions to test these two types of revenue. The firm did not perform procedures, beyond performing cut-off procedures, to test the remaining population of revenue transactions to address the assessed risk of material misstatement. (AS 1105.27; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm selected key item transactions to test these two types of revenue. The firm did not perform procedures, beyond performing cut-off procedures, to test the remaining population of revenue transactions to address the assessed risk of material misstatement. (AS 1105.27; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm selected key item transactions to test these two types of revenue. The firm did not perform procedures, beyond performing cut-off procedures, to test the remaining population of revenue transactions to address the assessed risk of material misstatement. (AS 1105.27; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether the issuer's accounting for one of these types of revenue as the principal rather than as an agent was appropriate, because the firm concluded that the issuer had the ability to direct and control the goods or services but it did not perform any procedures to support this conclusion. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether the issuer's accounting for one of these types of revenue as the principal rather than as an agent was appropriate, because the firm concluded that the issuer had the ability to direct and control the goods or services but it did not perform any procedures to support this conclusion. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the issuer's determination of the transaction price for a sample of transactions for a third type of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized several types of revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the issuer's determination of the transaction price for a sample of transactions for a third type of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of certain assets. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of significant assumptions developed by the company's specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of certain assets. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the relevance and reliability of data from sources external to the issuer that were used by the company's specialist in developing significant assumptions. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of certain assets. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of a significant assumption developed by the issuer. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6849", "Firm Names": "Hudgens CPA, PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "19-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries. The firm did not perform sufficient procedures to test the journal entries that met the criteria, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the relevance and reliability of certain data included in one of the issuer-prepared reports (\"\"invoice detailed report\"\") used in its substantive testing of revenue and accounts receivable because the firm did not test the validity of the information used to evaluate the relevance and reliability of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the relevance and reliability of certain data included in one of the issuer-prepared reports (\"\"invoice detailed report\"\") used in its substantive testing of revenue and accounts receivable because the firm did not test the validity of the information used to evaluate the relevance and reliability of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the relevance and reliability of certain data included in one of the issuer-prepared reports (\"\"invoice detailed report\"\") used in its substantive testing of revenue and accounts receivable because the firm did not test the validity of the information used to evaluate the relevance and reliability of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the relevance and reliability of certain data included in one of the issuer-prepared reports (\"\"invoice detailed report\"\") used in its substantive testing of revenue and accounts receivable because the firm did not test the validity of the information used to evaluate the relevance and reliability of the data. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of (1) the invoice detailed report used in its substantive testing of revenue and accounts receivable and (2) another issuer-prepared report used in its substantive testing of revenue. (AS 1105.10)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of (1) the invoice detailed report used in its substantive testing of revenue and accounts receivable and (2) another issuer-prepared report used in its substantive testing of revenue. (AS 1105.10)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nFor certain revenue transactions selected for testing, the firm did not perform procedures to test whether (1) a sales contract existed with the customer and (2) the issuer had satisfied its performance obligation prior to recognizing revenue, beyond agreeing the transactions or related purchase order information to the invoice detailed report referred to above. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "572", "Firm Names": "Weinberg & Company, P.A.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "5-Dec-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "To test revenue and accounts receivable, the firm performed tests of details over a sample of revenue transactions and confirmed a sample of customer receivables using certain issuer-prepared reports. The following deficiency was identified:\n·\nFor certain revenue transactions selected for testing, the firm did not perform procedures to test whether (1) a sales contract existed with the customer and (2) the issuer had satisfied its performance obligation prior to recognizing revenue, beyond agreeing the transactions or related purchase order information to the invoice detailed report referred to above. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the reconciliation and/or review of various accounts, including certain accounts related to revenue and inventory. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the reconciliation and/or review of various accounts, including certain accounts related to revenue and inventory. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the reconciliation and/or review of various accounts, including certain accounts related to revenue and inventory. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over the reconciliation and/or review of various accounts, including certain accounts related to revenue and inventory. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over (1) the accuracy and completeness of issuer-produced information used in the operation of the above controls and (2) the relevance and reliability of certain external information related to inventory used in the operation of one of the above controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over (1) the accuracy and completeness of issuer-produced information used in the operation of the above controls and (2) the relevance and reliability of certain external information related to inventory used in the operation of one of the above controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recorded an inventory reserve and the firm's approach for substantively testing the inventory reserve was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or (as discussed above) identify and test controls over, the accuracy and completeness of certain issuer-produced information used by the issuer to develop the inventory reserve. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recorded an inventory reserve and the firm's approach for substantively testing the inventory reserve was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate, or (as discussed above) identify and test controls over, the relevance and reliability of certain external information that the issuer used to develop the inventory reserve. (AS 1105.04 and.06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recorded an inventory reserve and the firm's approach for substantively testing the inventory reserve was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate, or (as discussed above) identify and test controls over, the relevance and reliability of certain external information that the issuer used to develop the inventory reserve. (AS 1105.04 and.06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded an inventory reserve and the firm's approach for substantively testing the inventory reserve was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the significant assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to evaluate whether certain revenue was recognized in conformity with IFRS 15, Revenue from Contracts with Customers, because it did not evaluate, beyond reading the issuer's revenue recognition policy, (1) each party's rights regarding the goods or services to be transferred and (2) the payment terms for the goods or services to be transferred. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient substantive procedures to evaluate whether certain revenue was recognized in conformity with IFRS 15, Revenue from Contracts with Customers, because it did not evaluate, beyond reading the issuer's revenue recognition policy, (1) each party's rights regarding the goods or services to be transferred and (2) the payment terms for the goods or services to be transferred. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "To evaluate the reliability of certain external information the firm used to test revenue, the firm sent a positive confirmation request to the external party and received an electronic response. The firm did not consider performing procedures to address the risks associated with the electronic response, such as verifying the source and contents of the confirmation response. (AS 2310.29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain external information it used to test revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain external information it used to test revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's substantive procedures to test this revenue included performing a substantive analytical procedure. The firm used external data in developing its expectation but did not perform any procedures to evaluate the reliability of that data. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The sample size the firm used in one of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of reliance on evidence from other substantive procedures that was not supported due to the deficiency in the firm's substantive analytical procedure discussed above. (AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The sample size the firm used in one of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of reliance on evidence from other substantive procedures that was not supported due to the deficiency in the firm's substantive analytical procedure discussed above. (AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The sample size the firm used in one of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because this procedure was designed based on a level of reliance on evidence from other substantive procedures that was not supported due to the deficiency in the firm's substantive analytical procedure discussed above. (AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed by the issuer because it did not evaluate the significant difference between it and a significant assumption used by the issuer in another estimate tested. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain other significant assumptions developed by the issuer. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate whether the issuer had a reasonable basis for another significant assumption it developed. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the reasonableness of another significant assumption, because it did not identify that the auditor-employed specialist did not (1) evaluate the relevance of certain internal and external information it used to evaluate the reasonableness of the assumption and (2) evaluate significant differences between the assumption and both external information it obtained and information provided by the company's specialist. Further, the firm did not perform procedures to use the work of the company's specialist as audit evidence. (AS 1105.04, .06, and .A1-.A10; AS 1201.C6 and .C7; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate whether the method used by the issuer to perform its quantitative assessment was in conformity with International Accounting Standard (IAS) 36, Impairment of Assets, because it did not identify that the auditor-employed specialist did not evaluate the effect on the quantitative assessment resulting from departures from IAS 36 it identified in the issuer's method. (AS 1201.C6 and .C7; AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate whether the method used by the issuer to perform its quantitative assessment was in conformity with International Accounting Standard (IAS) 36, Impairment of Assets, because it did not identify that the auditor-employed specialist did not evaluate the effect on the quantitative assessment resulting from departures from IAS 36 it identified in the issuer's method. (AS 1201.C6 and .C7; AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate whether the method used by the issuer to perform its quantitative assessment was in conformity with International Accounting Standard (IAS) 36, Impairment of Assets, because it did not identify that the auditor-employed specialist did not evaluate the effect on the quantitative assessment resulting from departures from IAS 36 it identified in the issuer's method. (AS 1201.C6 and .C7; AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not evaluate the relevance and/or reliability of certain external information it used to test the quantitative assessment. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not evaluate the relevance and/or reliability of certain external information it used to test the quantitative assessment. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer performed a quantitative assessment of impairment of certain long-lived assets and engaged an external specialist to provide information it used to develop an assumption. The firm's approach for substantively testing the impairment of long-lived assets was to test the issuer's process and the firm used an auditor-employed specialist to evaluate the methodology used by the issuer and a significant assumption the issuer developed. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of issuer-produced data used by the issuer to develop a significant assumption used in its quantitative assessment. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not evaluate the appropriateness of the presentation of certain long-lived assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nFor one type of revenue, the firm did not perform procedures to evaluate whether the underlying contracts represented contracts with an identifiable customer in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nFor one type of revenue, the firm did not perform procedures to evaluate whether the underlying contracts represented contracts with an identifiable customer in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nThe firm did not perform substantive procedures to evaluate the relevance and/or reliability of certain external information it used to test two types of revenue. (AS 1105.04 and.06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nThe firm did not perform substantive procedures to evaluate the relevance and/or reliability of certain external information it used to test two types of revenue. (AS 1105.04 and.06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nThe firm's substantive procedures to test one type of revenue included performing substantive analytical procedures. The firm used external data in developing its expectation but did not perform any procedures to evaluate the reliability of that data. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized multiple types of revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced information it used to test two types of revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "63", "Description in the Firm's Inspection Report": "The issuer reported the valuation of certain investments based on investee financial results, including unaudited financial statements. The firm did not apply, or request that the investor arrange with the investee to have another auditor apply, appropriate auditing procedures to the unaudited financial statements for these investees. (AS 1105.63)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop an estimate of a significant account. The firm selected a sample to test the accuracy and completeness of certain data used by the company's specialist. The firm did not sufficiently test the accuracy and completeness of this data, because it selected its sample from a sub-population of the data. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "32", "Firm Names": "Armanino LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Account", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop an estimate of a significant account. The firm selected a sample to test the accuracy and completeness of certain data used by the company's specialist. The firm did not test the accuracy of certain other data that the company's specialist used to develop a significant assumption. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Change Management", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used certain information technology (IT) systems to initiate, process, and record transactions related to (1) fee and commission income and related receivables and (2) realized and unrealized gain and losses and interest income. The firm selected for testing certain IT change management controls over these IT systems that consisted of the review, testing, and approval of changes prior to their migration into production. The following deficiency was identified:\n·\nThe firm did not perform procedures to test the design and operating effectiveness of a control related to user access, beyond observation of one individual's attempt to log in to the production and development environments. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Change Management", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used certain information technology (IT) systems to initiate, process, and record transactions related to (1) fee and commission income and related receivables and (2) realized and unrealized gain and losses and interest income. The firm selected for testing certain IT change management controls over these IT systems that consisted of the review, testing, and approval of changes prior to their migration into production. The following deficiency was identified:\n·\nThe firm did not perform procedures to test the design and operating effectiveness of a control related to user access, beyond observation of one individual's attempt to log in to the production and development environments. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Change Management", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used certain information technology (IT) systems to initiate, process, and record transactions related to (1) fee and commission income and related receivables and (2) realized and unrealized gain and losses and interest income. The firm selected for testing certain IT change management controls over these IT systems that consisted of the review, testing, and approval of changes prior to their migration into production. The following deficiency was identified:\n·\nThe firm did not test, or in the alternative, identify and test any controls over, the completeness of information that it used to make its selections for testing a control over change management. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Change Management", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used certain information technology (IT) systems to initiate, process, and record transactions related to (1) fee and commission income and related receivables and (2) realized and unrealized gain and losses and interest income. The firm selected for testing certain IT change management controls over these IT systems that consisted of the review, testing, and approval of changes prior to their migration into production. The following deficiency was identified:\n·\nThe firm selected for testing a control over change management for one of these systems but did not perform any procedures to determine whether the population of changes from which it made its selections for testing represented the complete population of changes made to this system. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Change Management", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used certain information technology (IT) systems to initiate, process, and record transactions related to (1) fee and commission income and related receivables and (2) realized and unrealized gain and losses and interest income. The firm selected for testing certain IT change management controls over these IT systems that consisted of the review, testing, and approval of changes prior to their migration into production. The following deficiency was identified:\n·\nThe firm did not identify and test a control to address the review and approval of changes, other than configuration, for certain of these systems. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to fee and commission income and related receivables. The firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to fee and commission income and related receivables. The firm did not evaluate the review procedures that the control owners performed, including the procedures to identify items for follow up and whether those items were appropriately resolved. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nAs a result of the firm's ITGC testing deficiencies discussed above, for fee and commission income and related receivables, the firm did not perform procedures to test, or sufficiently test controls over, the accuracy and completeness of certain system-generated data the firm used in its substantive procedures. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test fee and commission income from non-related parties beyond comparing the amounts to issuer-produced information. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test fee and commission income from non-related parties beyond comparing the amounts to issuer-produced information. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test the occurrence of fee and commission income from related parties beyond comparing the amounts to issuer-produced information and obtaining customer commission agreements. (AS 2301.08 and .13; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test the occurrence of fee and commission income from related parties beyond comparing the amounts to issuer-produced information and obtaining customer commission agreements. (AS 2301.08 and .13; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test the occurrence of fee and commission income from related parties beyond comparing the amounts to issuer-produced information and obtaining customer commission agreements. (AS 2301.08 and .13; AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of securities pricing obtained from external sources that it used to test the accuracy of fee and commission income from related parties. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of securities pricing obtained from external sources that it used to test the accuracy of fee and commission income from related parties. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not identify and evaluate the issuer's omission of certain disclosures related to fee and commission income required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "10", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not identify and evaluate the issuer's omission of certain disclosures related to fee and commission income required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Fee and Commission Income and Related Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "11", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "For fee and commission income and related receivables, the following additional deficiencys related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test receivables due from a related party beyond confirming the amount with an individual who was an executive officer of the issuer and an employee of the related party. (AS 2410.12)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to realized and unrealized gains and losses and interest income. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to realized and unrealized gains and losses and interest income. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to realized and unrealized gains and losses and interest income. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm selected for testing controls over the reconciliation and/or review of information related to realized and unrealized gains and losses and interest income. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test realized gains and losses because it limited its procedures to recalculating the gains or losses for a sample of transactions based on issuer-produced information or information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test realized gains and losses because it limited its procedures to recalculating the gains or losses for a sample of transactions based on issuer-produced information or information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test realized gains and losses because it limited its procedures to recalculating the gains or losses for a sample of transactions based on issuer-produced information or information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "13", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test realized gains and losses because it limited its procedures to recalculating the gains or losses for a sample of transactions based on issuer-produced information or information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform any procedures to test the unrealized gains and losses at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform any procedures to test the unrealized gains and losses at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform any procedures to test the unrealized gains and losses at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform any procedures to test the unrealized gains and losses at year end. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test interest income because it limited its procedures to recalculating interest income for a sample of transactions and tracing data used in the recalculation to information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test interest income because it limited its procedures to recalculating interest income for a sample of transactions and tracing data used in the recalculation to information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test interest income because it limited its procedures to recalculating interest income for a sample of transactions and tracing data used in the recalculation to information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "15", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform sufficient procedures to test interest income because it limited its procedures to recalculating interest income for a sample of transactions and tracing data used in the recalculation to information obtained from external sources. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of information it obtained from external sources that it used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of information it obtained from external sources that it used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of information it obtained from external sources that it used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "16", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of information it obtained from external sources that it used in its testing. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Interest Income", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "17", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test, or identify and test any controls over, the accuracy and completeness of certain system-generated data used in the firm's testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Realized and Unrealized Gains and Losses", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "17", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "For realized and unrealized gains and losses and interest income, the following additional deficiency related to the firm's testing of controls and substantive testing were identified:\n·\nThe firm did not perform procedures to test, or identify and test any controls over, the accuracy and completeness of certain system-generated data used in the firm's testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Planned Divestiture of Certain Subsidiaries", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer planned to divest of its interest in certain subsidiaries. The firm did not identify and test a control that addressed whether the assets and liabilities of these subsidiaries met the held for sale criteria and should have been presented as discontinued operations in the financial statements in accordance with FASB ASC Topic 205, Presentation of Financial Statements. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Planned Divestiture of Certain Subsidiaries", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer planned to divest of its interest in certain subsidiaries. The firm did not perform substantive procedures to evaluate whether the assets and liabilities of these subsidiaries met the held for sale criteria and should have been presented as discontinued operations in the financial statements in accordance with FASB ASC Topic 205. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "374", "Firm Names": "WSRP, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "20", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing controls that consisted of the issuer's review of revenue recognized over time. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing controls that consisted of the issuer's review of revenue recognized over time. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing controls that consisted of the issuer's review of inventory. The firm did not identify and test any controls over the accuracy and completeness of the reports that the control owners used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing controls that consisted of the issuer's review of inventory. The firm did not identify and test any controls to address whether inventory was recorded at the lower of cost or net realizable value. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized an allowance for slow-moving and obsolete inventories that included a general reserve. The firm did not evaluate the reasonableness of the significant assumptions the issuer used to develop the general reserve. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not identify that the auditor-engaged specialist did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain significant assumptions the issuer used to develop the fair value of this account and perform additional procedures, or request the auditor-engaged specialist to perform additional procedures, to address the issue. (AS 1210.09 and .12; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1210", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not identify that the auditor-engaged specialist did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain significant assumptions the issuer used to develop the fair value of this account and perform additional procedures, or request the auditor-engaged specialist to perform additional procedures, to address the issue. (AS 1210.09 and .12; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not identify that the auditor-engaged specialist did not perform procedures, beyond inquiry, to evaluate the reasonableness of certain significant assumptions the issuer used to develop the fair value of this account and perform additional procedures, or request the auditor-engaged specialist to perform additional procedures, to address the issue. (AS 1210.09 and .12; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or in the alternative, identify and test controls over, the accuracy and completeness of certain issuer-produced information the issuer used to develop the fair value of this account. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of certain information from external sources the issuer used to develop the fair value of this account. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of certain information from external sources the issuer used to develop the fair value of this account. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported a significant account at fair value. The firm's approach to substantively testing the fair value of this account was to test the issuer's process, and the firm engaged an external specialist to evaluate certain of the significant assumptions that the issuer used to develop the fair value. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond a comparison to prior year amounts, to evaluate the reasonableness of certain components of a significant assumption the issuer used to develop the fair value of this account. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "569", "Firm Names": "MSL, P.A.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform substantive procedures, beyond certain recalculations, to test the valuation of certain other significant accounts. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform any procedures to evaluate whether the issuer's recognition of certain revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform any procedures to evaluate whether the issuer's recognition of certain revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain revenue recognized over time, the firm did not evaluate whether there were significant judgments used by the issuer in determining the timing of satisfaction of performance obligations and whether all applicable required disclosures were made. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain revenue recognized over time, the firm did not evaluate whether there were significant judgments used by the issuer in determining the timing of satisfaction of performance obligations and whether all applicable required disclosures were made. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm sent positive confirmation requests to a sample of customers as part of its testing of revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to determine whether certain of the confirmation requests were directed to third parties who were knowledgeable about the information to be confirmed. (AS 2310.26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm sent positive confirmation requests to a sample of customers as part of its testing of revenue. The following deficiency was identified:\n·\nThe firm received an electronic response to one confirmation request. The firm did not consider performing procedures to address the risks associated with an electronic response, such as verifying the source and contents of the confirmation response. (AS 2310.29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. The issuer recorded an allowance for expected credit losses related to accounts receivable, which was based, in part, on significant assumptions regarding default rates. The issuer assigned credit rating categories to each receivable based on whether or not the customer had made payments and assigned a default rate to each customer's receivable based on that assigned category, which was based on information from an external source. The firm's approach to test the allowance for expected credit losses was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of the significant assumption used by the issuer related to default rates, beyond comparing the rates to data from the external source that the issuer used to develop the rates. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. \nThe issuer recorded an allowance for expected credit losses related to accounts receivable, which was based, in part, on significant assumptions regarding default rates. The issuer assigned credit rating categories to each receivable based on whether or not the customer had made payments and assigned a default rate to each customer's receivable based on that assigned category, which was based on information from an external source. The firm's approach to test the allowance for expected credit losses was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance of the credit rating categories from the external source that the issuer used in determining the default rates. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below. \nThe issuer recorded an allowance for expected credit losses related to accounts receivable, which was based, in part, on significant assumptions regarding default rates. The issuer assigned credit rating categories to each receivable based on whether or not the customer had made payments and assigned a default rate to each customer's receivable based on that assigned category, which was based on information from an external source. The firm's approach to test the allowance for expected credit losses was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance of the credit rating categories from the external source that the issuer used in determining the default rates. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer recorded an allowance for expected credit losses related to accounts receivable, which was based, in part, on significant assumptions regarding default rates. The issuer assigned credit rating categories to each receivable based on whether or not the customer had made payments and assigned a default rate to each customer's receivable based on that assigned category, which was based on information from an external source. The firm's approach to test the allowance for expected credit losses was to test the issuer's process. The following deficiency was identified:\n· The firm did not perform procedures to test, or test any controls over, the accuracy of certain information used by the issuer in calculating a component of its allowance for expected credit losses. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer recorded an allowance for expected credit losses related to accounts receivable, which was based, in part, on significant assumptions regarding default rates. The issuer assigned credit rating categories to each receivable based on whether or not the customer had made payments and assigned a default rate to each customer's receivable based on that assigned category, which was based on information from an external source. The firm's approach to test the allowance for expected credit losses was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond comparison to an issuer-prepared schedule, to test the issuer's presentation of certain items related to accounts receivable and the allowance for expected credit losses in the statement of cash flows. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported intangible assets and evaluated them for impairment using undiscounted cash flow analyses. The firm's approach to test the issuer's impairment analyses was to test the issuer's process. The firm did not sufficiently evaluate whether the method used by the issuer to develop the impairment analyses was in conformity with GAAP as it did not evaluate whether the method was in conformity with certain applicable requirements of FASB ASC Topic 350, Intangibles—Goodwill and Other, and FASB ASC Topic 360, Property, Plant, and Equipment. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported intangible assets and evaluated them for impairment using undiscounted cash flow analyses. The firm's approach to test the issuer's impairment analyses was to test the issuer's process.The firm did not perform procedures, beyond inquiry, to evaluate the reasonableness of significant assumptions related to the undiscounted cash flow projections used by the issuer to develop the impairment analyses. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of a reconciliation related to revenue. The firm did not (1) evaluate the specific 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of a reconciliation related to revenue. The firm did not (1) evaluate the specific 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of a reconciliation related to revenue. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of the control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control over sales invoices. The firm did not perform procedures to test, or identify and test controls over, the completeness of the issuer-produced sales invoice listing used in its testing of the control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a review control over purchases and disposals of long-lived assets. The firm did not test the aspect of this control related to the control owner's review of the summary of activity or transaction details supporting the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a review control over purchases and disposals of long-lived assets. The firm did not test the aspect of this control related to the control owner's review of the summary of activity or transaction details supporting the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer developed undiscounted cash flows to evaluate certain long-lived assets for potential impairment. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of significant assumptions related to daily revenue rates, beyond comparing the rates used by the issuer to rates obtained from the external source that the issuer used to develop the assumptions. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer developed undiscounted cash flows to evaluate certain long-lived assets for potential impairment. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of the rates obtained from the external source. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer developed undiscounted cash flows to evaluate certain long-lived assets for potential impairment. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and reliability of the rates obtained from the external source. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer developed undiscounted cash flows to evaluate certain long-lived assets for potential impairment. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of significant assumptions related to certain expense rates, because it limited its procedures to comparing the rates to the actual operating expenses during the year and the issuer's budget, without evaluating whether the issuer had a reasonable basis for the assumptions in the budget. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Evaluating Control Deficiencies", "Firm-Identified Risk Assessment": "", "Finding Count": "8", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "62", "Description in the Firm's Inspection Report": "The firm identified control deficiencies related to significant accounts and in areas of significant risk. The firm did not provide a reasonable basis to support its conclusion that the magnitude of the potential misstatements resulting from the control deficiencies was not material. (AS 2201.62)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Evaluating Control Deficiencies", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified deficiencies in the design and operating effectiveness of controls related to revenue and long-lived assets. The firm identified and tested two review controls that it believed would mitigate the deficiencies (\"\"compensating controls\"\"). The following deficiency was identified:\n·\nFor one control, the firm did not perform procedures to evaluate the review procedures that the control owner performed to be able to conclude that the compensating control mitigated the identified control deficiency. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Evaluating Control Deficiencies", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified deficiencies in the design and operating effectiveness of controls related to revenue and long-lived assets. The firm identified and tested two review controls that it believed would mitigate the deficiencies (\"\"compensating controls\"\"). The following deficiency was identified:\n·\nThe firm did not identity and test any controls over the accuracy and completeness of the supporting documentation used in the performance of this control. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "717", "Firm Names": "MSPC, Certified Public Accountants and Advisors, A Professional Corporation", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Evaluating Control Deficiencies", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "68", "Description in the Firm's Inspection Report": "The firm identified deficiencies in the design and operating effectiveness of controls related to revenue and long-lived assets. The firm identified and tested two review controls that it believed would mitigate the deficiencies (\"\"compensating controls\"\"). The following deficiency was identified:\n·\nFor another control, the firm did not identify that this control did not address the identified control deficiencies related to revenues and long-lived assets. (AS 2201.68)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe expectations the firm used were not sufficiently precise because, although disaggregated, the firm's procedures consisted of comparisons of amounts and certain ratios to prior years without determining whether the prior-year amounts and ratios were sufficiently predictive of current-year amounts and ratios. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe expectations the firm used were not sufficiently precise because, although disaggregated, the firm's procedures consisted of comparisons of amounts and certain ratios to prior years without determining whether the prior-year amounts and ratios were sufficiently predictive of current-year amounts and ratios. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe firm developed its expectations, in part, using data derived from the recorded amounts of revenue. The firm did not evaluate whether these data were sufficiently relevant and reliable for the purpose of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe firm developed its expectations, in part, using data derived from the recorded amounts of revenue. The firm did not evaluate whether these data were sufficiently relevant and reliable for the purpose of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe firm developed its expectations, in part, using data derived from the recorded amounts of revenue. The firm did not evaluate whether these data were sufficiently relevant and reliable for the purpose of achieving its audit objectives. (AS 1105.04 and .06; AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe firm used certain system-generated data in its substantive testing of this revenue but did not test, or in the alternative, test any controls over, the accuracy of these data. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "20", "Description in the Firm's Inspection Report": "The issuer recorded multiple types of revenue. For premium revenue, the firm's primary substantive procedure consisted of analytical procedures. The following deficiency was identified:\n·\nThe firm did not establish an amount of difference from the expectation that could be accepted without further investigation. (AS 2305.20)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "For investment income, the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. For the analytical procedures, the firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships and whether its expectations of interest rates, based on the trend over several previous years, were sufficiently precise. (AS 2305.13, .14, and .17)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "For investment income, the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. For the analytical procedures, the firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships and whether its expectations of interest rates, based on the trend over several previous years, were sufficiently precise. (AS 2305.13, .14, and .17)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "For investment income, the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. For the analytical procedures, the firm did not determine whether the expectations it used in these analytical procedures were based on predictable relationships and whether its expectations of interest rates, based on the trend over several previous years, were sufficiently precise. (AS 2305.13, .14, and .17)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "For investment income, the firm's substantive procedures consisted of performing analytical procedures using certain issuer data or data from a third-party service provider. The firm did not evaluate whether the data used in the analytical procedures was sufficiently reliable for the purpose of achieving its audit objectives. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "718", "Firm Names": "Kerber, Eck & Braeckel LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not appropriately consider the characteristics of potentially fraudulent journal entries in determining the criteria it used to identify and select journal entries for testing because it limited its procedures to certain journal entries recorded at year end without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2410", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate an error related to the presentation of a related party receivable in the issuer's balance sheet in accordance with FASB ASC Topic 210, Balance Sheet. (AS 2410.17; AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its presentation of this related party receivable 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate an error related to the presentation of a related party receivable in the issuer's balance sheet in accordance with FASB ASC Topic 210, Balance Sheet. (AS 2410.17; AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its presentation of this related party receivable 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate an error related to the presentation of a related party receivable in the issuer's balance sheet in accordance with FASB ASC Topic 210, Balance Sheet. (AS 2410.17; AS 2810.30 and .31)\nUnrelated to our review, the issuer reevaluated its presentation of this related party receivable 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 revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain information it obtained from external sources and used in its substantive procedures to test certain sales. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain information it obtained from external sources and used in its substantive procedures to test certain sales. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "To test the existence of inventory, the firm selected a sample of items biased towards high-dollar value individual items. The firm did not perform any procedures to test the remaining population of inventory. (AS 2315.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test the existence of inventory, the firm selected a sample of items biased towards high-dollar value individual items. The firm did not perform any procedures to test the cost of inventory. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the terms and conditions of the issuer's arrangements with its customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the terms and conditions of the issuer's arrangements with its customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test whether the issuer satisfied its performance obligations prior to the recognition of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm also did not perform any procedures to test, or in the alternative, identify and test controls over, the accuracy and completeness of certain issuer-produced information it used in its substantive procedures. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test digital assets. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain liabilities. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of convertible debt. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of convertible debt. The firm did not perform any procedures to evaluate the reasonableness of the significant assumptions developed by the issuer and the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Convertible Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to determine the fair value of convertible debt. The firm did not perform any procedures to test the accuracy and completeness of issuer-produced data, and evaluate the relevance and reliability of data from external sources, that were used by the company's specialist. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Possible Illegal Acts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the audit, the firm became aware of information concerning possible illegal acts by the issuer. The firm did not evaluate the information concerning the possible illegal acts to obtain (1) an understanding of the nature of the acts and the circumstances in which they occurred and (2) sufficient other information to evaluate the effect on the financial statements. (AS 2405.07 and 10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Possible Illegal Acts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2405", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "During the audit, the firm became aware of information concerning possible illegal acts by the issuer. The firm did not evaluate the information concerning the possible illegal acts to obtain (1) an understanding of the nature of the acts and the circumstances in which they occurred and (2) sufficient other information to evaluate the effect on the financial statements. (AS 2405.07 and 10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1171", "Firm Names": "WWC, P.C.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or identify and test controls over, the accuracy of certain data used to determine the valuation of certain investment securities, beyond testing the accuracy of the data in the prior year. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1227", "Firm Names": "BDO Canada LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Non-Current Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it in testing the fair value of certain non-current assets. The auditor-employed specialist's approach consisted of developing an independent expectation, as a range, of fair value outcomes using comparable publicly traded companies and precedent transactions in the sector. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the firm did not evaluate whether the auditor-employed specialist's independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1227", "Firm Names": "BDO Canada LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Non-Current Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it in testing the fair value of certain non-current assets. The auditor-employed specialist's approach consisted of developing an independent expectation, as a range, of fair value outcomes using comparable publicly traded companies and precedent transactions in the sector. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the firm did not evaluate whether the auditor-employed specialist's independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1227", "Firm Names": "BDO Canada LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Non-Current Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "25", "Description in the Firm's Inspection Report": "The firm used an auditor-employed specialist to assist it in testing the fair value of certain non-current assets. The auditor-employed specialist's approach consisted of developing an independent expectation, as a range, of fair value outcomes using comparable publicly traded companies and precedent transactions in the sector. The firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the firm did not evaluate whether the auditor-employed specialist's independent expectation of the fair value as a range encompassed only reasonable outcomes and was supported by sufficient appropriate audit evidence. (AS 1201.C6 and .C7; AS 2501.25)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1227", "Firm Names": "BDO Canada LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to perform procedures to address certain risks of material misstatement identified by the principal auditor, including a fraud risk related to management override of controls. The firm reported to the principal auditor that it responded to the identified fraud risk by performing procedures to test journal entries, among other procedures. The firm did not perform procedures to select and test journal entries for certain fraud criteria identified by the firm. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1432", "Firm Names": "BDO Bedrijfsrevisoren - BDO Reviseurs d'Entreprises", "Inspection Year": "2023", "Country": "Belgium", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the valuation of a significant transaction was to test the issuer's process, which included the use of projected financial information developed by the issuer using significant assumptions related to sales volume for the forecasted period. The firm did not sufficiently evaluate the reasonableness of these assumptions because it limited its procedures to inquiry of management and review of internal plans, without taking into account the issuer's ability to carry out its planned course of action. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1432", "Firm Names": "BDO Bedrijfsrevisoren - BDO Reviseurs d'Entreprises", "Inspection Year": "2023", "Country": "Belgium", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Transaction", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the valuation of a significant transaction was to test the issuer's process, which included the use of projected financial information developed by the issuer using significant assumptions related to sales volume for the forecasted period. The firm did not sufficiently evaluate the reasonableness of these assumptions because it limited its procedures to inquiry of management and review of internal plans, without taking into account the issuer's ability to carry out its planned course of action. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1432", "Firm Names": "BDO Bedrijfsrevisoren - BDO Reviseurs d'Entreprises", "Inspection Year": "2023", "Country": "Belgium", "Global Network": "BDO International Limited", "Inspection Report Date": "21-Nov-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced system-generated data used in its substantive testing of revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "116", "Firm Names": "Delap LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not appropriately consider the characteristics of potentially fraudulent journal entries when identifying and selecting journal entries for testing and instead haphazardly selected entries for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "149", "Firm Names": "Elliott Davis, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used information from a service organization in developing its estimate of the ACL. The firm selected for testing certain controls that used data and reports from the service organization. The firm did not (1) perform any procedures to obtain evidence regarding the service organization's controls for the year under audit or (2) identify and test any other controls over the accuracy and completeness of the data and reports used in the performance of these controls. (AS 2201.39 and .B19)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "149", "Firm Names": "Elliott Davis, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B19", "Description in the Firm's Inspection Report": "The issuer used information from a service organization in developing its estimate of the ACL. The firm selected for testing certain controls that used data and reports from the service organization. The firm did not (1) perform any procedures to obtain evidence regarding the service organization's controls for the year under audit or (2) identify and test any other controls over the accuracy and completeness of the data and reports used in the performance of these controls. (AS 2201.39 and .B19)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "149", "Firm Names": "Elliott Davis, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm used certain of these data and reports in its substantive testing of the ACL but did not test, or identify and test any controls over (as discussed above), the accuracy and/or completeness of these data and reports. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "149", "Firm Names": "Elliott Davis, LLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm used certain of these data and reports in its substantive testing of the ACL but did not test, or identify and test any controls over (as discussed above), the accuracy and/or completeness of these data and reports. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "178", "Firm Names": "Semple, Marchal & Cooper, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected certain revenue transactions for testing. The firm did not perform sufficient procedures to evaluate whether the issuer met its performance obligations before revenue was recognized because it limited its procedures to obtaining incident response logs and reports prepared by the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "178", "Firm Names": "Semple, Marchal & Cooper, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected certain revenue transactions for testing. The firm did not perform sufficient procedures to evaluate whether the issuer met its performance obligations before revenue was recognized because it limited its procedures to obtaining incident response logs and reports prepared by the issuer. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "178", "Firm Names": "Semple, Marchal & Cooper, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected certain revenue transactions for testing. The firm did not determine whether the expectations it used in its substantive analytical procedures over revenue were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "178", "Firm Names": "Semple, Marchal & Cooper, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "14", "Description in the Firm's Inspection Report": "The firm selected certain revenue transactions for testing. The firm did not determine whether the expectations it used in its substantive analytical procedures over revenue were based on predictable relationships. (AS 2305.13 and .14)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "178", "Firm Names": "Semple, Marchal & Cooper, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test, or identify and test controls over, the accuracy of the accounts receivable aging report it used in its substantive testing of the allowance for doubtful accounts because it used the invoice dates included in the report to recalculate the aging, without performing procedures to test the accuracy of those dates. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing controls that included the review of revenue. The firm did not evaluate the specific review procedures performed by the control owners to assess (i) that revenue was recognized in the appropriate period and (ii) the reasonableness of estimated hours to complete. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing controls that included the review of revenue. The firm did not evaluate the specific review procedures performed by the control owners to assess (i) that revenue was recognized in the appropriate period and (ii) the reasonableness of estimated hours to complete. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing a control over the review of hours incurred. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing a control over the review of hours incurred. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the accuracy and completeness of certain issuer-produced information used in the operation of the above controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the identification of performance obligations in contracts, determination of the transaction price, and allocation of the transaction price to the identified performance obligations. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing two controls that included the review of the presentation and disclosure of the financial statements. The firm did not evaluate the specific review procedures performed by the control owners to evaluate the reasonableness of a disclosure related to revenue. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm selected for testing two controls that included the review of the presentation and disclosure of the financial statements. The firm did not evaluate the specific review procedures performed by the control owners to evaluate the reasonableness of a disclosure related to revenue. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not test, or (as discussed above) test controls over, the accuracy and completeness of issuer-produced information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or identify and test controls over, the accuracy and completeness of certain other issuer-produced information used in its substantive testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not perform procedures to test disclosures related to performance obligations expected to be recognized at year end and the periods over which the issuer expects to recognize those amounts beyond obtaining issuer-produced reports. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on hours incurred to date relative to total estimated hours to complete. The following deficiency was identified:\n·\nThe firm did not perform procedures, beyond inquiry of management, to evaluate the reasonableness of significant assumptions related to estimated hours to complete. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm did not identify and test any controls over the existence and completeness of accounts receivable. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "11", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the review of the allowance for doubtful accounts. The firm did not identify and test controls over the accuracy and completeness of the accounts receivable aging used in the operation of these two controls, beyond identifying and testing a control over the accurate aging of outstanding invoices. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the review of the allowance for doubtful accounts. With respect to the control over the accurate aging of outstanding invoices, the firm did not directly test this control because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the review of the allowance for doubtful accounts. With respect to the control over the accurate aging of outstanding invoices, the firm did not directly test this control because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B9", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over the review of the allowance for doubtful accounts. With respect to the control over the accurate aging of outstanding invoices, the firm did not directly test this control because its procedures were substantive in nature. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "13", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests to test accounts receivable. 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 to address the existence and accuracy of the accounts receivable. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "14", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries. The firm did not perform sufficient procedures to test the journal entries that met the criteria, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test that the issuer satisfied its performance obligations prior to the recognition of revenue, beyond obtaining an issuer-produced report and issuer-produced data. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test that the issuer satisfied its performance obligations prior to the recognition of revenue, beyond obtaining an issuer-produced report and issuer-produced data. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "468", "Firm Names": "Rose, Snyder & Jacobs LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries. The firm did not perform sufficient procedures to test the journal entries that met the criteria, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "55", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe firm selected for testing controls over certain revenue and accounts receivable and tested the controls through the second quarter of the year under audit. The firm did not perform procedures to update the results of its testing from this interim date to year end beyond inquiry of management. (AS 2201.55)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue and Related Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer recognized revenue as services were provided and accrued revenue and recorded accounts receivable for services provided but not yet billed. The firm identified an elevated inherent risk related to certain revenue that was recognized over time. The following deficiency was identified: \n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced system generated information it used to test unbilled revenue and accounts receivable. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain services, the issuer offered discounts, rebates, and other concessions (collectively \"\"price adjustments\"\") to customers and recognized revenue based on the gross invoiced price less any applicable price adjustments. To test revenue recognized from these services, the firm selected a sample of customer invoices and agreed the net invoiced amounts to cash collections. The firm did not perform any substantive procedures to test the accuracy of the gross invoiced prices and applicable price adjustments. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1273", "Firm Names": "KPMG Auditores Consultores Limitada", "Inspection Year": "2023", "Country": "Chile", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with an incorrect opinion on the financial statements and/or ICFR", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm was instructed by the principal auditor to perform procedures to test journal entries and other adjustments to address the risk of management override of controls around the financial reporting processes at the group level. The firm identified fraud criteria to identify and select journal entries for testing and communicated the criteria to the principal auditor. The firm did not perform procedures to identify and test journal entries that met one of the criteria. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2230", "Firm Names": "Fiondella, Milone & LaSaracina LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain automated application controls related to revenue. The firm's testing of these controls was not sufficient because the procedures performed were substantive in nature and did not directly test the controls. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2230", "Firm Names": "Fiondella, Milone & LaSaracina LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain automated application controls related to revenue. The firm's testing of these controls was not sufficient because the procedures performed were substantive in nature and did not directly test the controls. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2230", "Firm Names": "Fiondella, Milone & LaSaracina LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B9", "Description in the Firm's Inspection Report": "The firm selected for testing certain automated application controls related to revenue. The firm's testing of these controls was not sufficient because the procedures performed were substantive in nature and did not directly test the controls. (AS 2201.42, .44, and .B9)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2230", "Firm Names": "Fiondella, Milone & LaSaracina LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over the valuation of goodwill. The firm did not identify and test controls over the accuracy of data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer entered into certain revenue arrangements during the year. The firm did not perform procedures, beyond comparisons to issuer-produced reports, to test this revenue, including testing the valuation of certain aspects of revenue. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer entered into certain revenue arrangements during the year. The firm did not perform procedures, beyond comparisons to issuer-produced reports, to test this revenue, including testing the valuation of certain aspects of revenue. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer entered into certain revenue arrangements during the year. The firm did not perform procedures, beyond comparisons to issuer-produced reports, to test this revenue, including testing the valuation of certain aspects of revenue. (AS 2301.08 and .11; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "67", "Description in the Firm's Inspection Report": "The issuer entered into certain revenue arrangements during the year. The firm did not evaluate the business purpose (or lack thereof) of these arrangements that appeared unusual due to their timing, size, or nature, including whether they may have been entered into to engage in fraudulent financial reporting or conceal misappropriation of assets given certain facts regarding the arrangements. (AS 2401.67)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Statement of Cash Flows", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the statement of cash flows. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test revenue, beyond tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test revenue, beyond tracing a sample of revenue transactions to issuer-prepared invoices. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2510", "Paragraph of the Auditing Standard": "9", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the existence of inventory, beyond comparing inventory counts from the issuer's inventory records to records from the issuer's warehouses. (AS 2510.09)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the inventory reserves, beyond obtaining and reading a listing of obsolete items and the approval for the write off of certain inventory. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test revenue, beyond tracing all revenue transactions to issuer-prepared invoices and evaluating the appropriateness of the issuer's revenue recognition policy. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer's conclusion that there were no indicators of potential impairment for intangible assets even though the firm was aware such conditions existed. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the issuer's conclusion that there were no indicators of potential impairment for intangible assets even though the firm was aware such conditions existed. (AS 2301.08; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "5968", "Firm Names": "Olayinka Oyebola & Co (Chartered Accountants)", "Inspection Year": "2023", "Country": "Nigeria", "Global Network": "", "Inspection Report Date": "24-Oct-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "58", "Description in the Firm's Inspection Report": "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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer determined the qualitative component of the ALL by applying basis points to qualitative factors. The following deficiency was identified:\n·\nThe firm selected for testing a review control over the qualitative component of the ALL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the basis points applied to each qualitative factor. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer determined the qualitative component of the ALL by applying basis points to qualitative factors. The following deficiency was identified:\n·\nThe firm selected for testing a review control over the qualitative component of the ALL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the basis points applied to each qualitative factor. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer determined the qualitative component of the ALL by applying basis points to qualitative factors. The following deficiency was identified:\n·\nThe firm's approach for substantively testing the qualitative component of the ALL was to test the issuer's process. The firm did not evaluate whether the issuer had a reasonable basis for the significant assumptions related to basis points applied to the qualitative factors. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe firm selected for testing a review control to address the risk related to inaccurate loan risk ratings. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether the loan risk ratings reviews were occurring timely. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe firm selected for testing a review control to address the risk related to inaccurate loan risk ratings. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether the loan risk ratings reviews were occurring timely. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "Loan risk ratings were an important input in estimating the issuer's ALL. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the reasonableness of loan risk ratings was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe firm selected for testing a control that included the review of impaired loans. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether impaired loans were appropriately reserved, including the review of support for the collateral value of the loans. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe firm selected for testing a control that included the review of impaired loans. The firm did not evaluate the specific review procedures that the control owners performed to evaluate whether impaired loans were appropriately reserved, including the review of support for the collateral value of the loans. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer's ALL included reserves for impaired loans. The following deficiency was identified:\n·\nThe sample size the firm used in its substantive procedure to test the valuation of impaired loans was too small to provide sufficient appropriate audit evidence because the procedure was designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged valuation specialists to determine the fair value of the collateral for impaired loans. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of the significant assumptions developed and used by the company's specialists. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged valuation specialists to determine the fair value of the collateral for impaired loans. The following deficiency was identified:\n·\nThe firm did not test the accuracy and completeness of certain issuer-produced data used by the company's specialists. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged valuation specialists to determine the fair value of the collateral for impaired loans. The following deficiency was identified:\n·\nThe firm did not evaluate the relevance and reliability of certain data from external sources used by the company's specialists. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "10", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged valuation specialists to determine the fair value of the collateral for impaired loans. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate whether the issuer had a reasonable basis for the significant assumptions it developed related to the adjustments the issuer made to the valuation of collateral. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the qualitative component of the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's reviews of the ACL. The firm did not evaluate the specific review procedures that the control owners performed to evaluate the reasonableness of the qualitative component of the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used certain data to determine the quantitative component of the ACL. The firm did not identify and test any controls over the accuracy and/or completeness of this data. (AS 2201.39) In addition, the firm used this data to substantively test the ACL. The firm did not perform any procedures to test, or (as discussed above) identify and test any controls over, the accuracy of this data. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used certain data to determine the quantitative component of the ACL. In addition, the firm used this data to substantively test the ACL. The firm did not perform any procedures to test, or (as discussed above) identify and test any controls over, the accuracy of this data. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the valuation of certain investment securities, including some accounted for at fair value. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "392", "Firm Names": "Wolf & Company, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test the valuation of certain investment securities, including some accounted for at fair value. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and/or reliability of external information it used to test revenue and digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and/or reliability of external information it used to test revenue and digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and/or reliability of external information it used to test revenue and digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the relevance and/or reliability of external information it used to test revenue and digital assets. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to establish that the issuer had control over the digital assets beyond viewing the digital asset wallets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to establish that the issuer had control over the digital assets beyond viewing the digital asset wallets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to establish that the issuer had control over the digital assets beyond viewing the digital asset wallets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to establish that the issuer had control over the digital assets beyond viewing the digital asset wallets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the presentation of digital assets as either current or non-current assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the presentation of digital assets as either current or non-current assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the presentation of digital assets as either current or non-current assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the presentation of digital assets as either current or non-current assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not evaluate the appropriateness of the issuer's accounting for certain of the digital assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not evaluate the appropriateness of the issuer's accounting for certain of the digital assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not evaluate the appropriateness of the issuer's accounting for certain of the digital assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer earned revenue through cryptocurrency transactions and received digital assets in return. The following deficiency was identified:\n·\nThe firm did not evaluate the appropriateness of the issuer's accounting for certain of the digital assets. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on costs incurred to date relative to total estimated costs to complete. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to test the accuracy and completeness of an issuer-prepared schedule it used to test this revenue because it limited its procedures to comparing it to a system-generated report. Further, the firm did not perform sufficient procedures to test the accuracy and completeness of the system-generated report because it limited its testing to one item. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on costs incurred to date relative to total estimated costs to complete. The following deficiency was identified:\n·\nThe firm did not perform any procedures to test, or identify and test controls over, the accuracy and completeness of certain other issuer-prepared schedules it used to test this revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's revenue included revenue recognized from contracts over time based on costs incurred to date relative to total estimated costs to complete. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of the significant assumption related to estimated labor costs to complete, because it limited its procedures to inquiry and a comparison to a report that included costs incurred subsequent to year end. Further, the firm did not perform any procedures to test, or identify and test controls over, the accuracy and completeness of the report of costs incurred subsequent to year end. (AS 1105.10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the raw material costs in inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test the raw material costs in inventory at year end. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or identify and test controls over, the accuracy and completeness of certain system-generated reports that it used to substantively test certain inventory. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer's accounting for certain revenue as the principal rather than as an agent was appropriate, beyond obtaining an issuer-prepared analysis. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate whether the issuer's accounting for certain revenue as the principal rather than as an agent was appropriate, beyond obtaining an issuer-prepared analysis. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations for a second type of revenue because it limited its procedures to (1) obtaining cash receipts and sales invoices and (2) sending negative confirmations to a respondent who was a related party without considering the respondent's objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2301.08 and .13; AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations for a second type of revenue because it limited its procedures to (1) obtaining cash receipts and sales invoices and (2) sending negative confirmations to a respondent who was a related party without considering the respondent's objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2301.08 and .13; AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations for a second type of revenue because it limited its procedures to (1) obtaining cash receipts and sales invoices and (2) sending negative confirmations to a respondent who was a related party without considering the respondent's objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2301.08 and .13; AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The firm did not perform sufficient procedures to test whether the issuer satisfied its performance obligations for a second type of revenue because it limited its procedures to (1) obtaining cash receipts and sales invoices and (2) sending negative confirmations to a respondent who was a related party without considering the respondent's objectivity and freedom from bias and whether the response that was received by the firm provided meaningful and appropriate evidence. (AS 2301.08 and .13; AS 2310.26 and .27)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test a third type of revenue. For certain of the sampled transactions, the firm did not perform procedures to test the quantity used to recognize revenue, beyond obtaining a system-generated report without testing, or identifying and testing controls over, the accuracy and completeness of the report. (AS 1105.10; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test a third type of revenue. For certain of the sampled transactions, the firm did not perform procedures to test the quantity used to recognize revenue, beyond obtaining a system-generated report without testing, or identifying and testing controls over, the accuracy and completeness of the report. (AS 1105.10; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm selected a sample of transactions to test a third type of revenue. For certain of the sampled transactions, the firm did not perform procedures to test the quantity used to recognize revenue, beyond obtaining a system-generated report without testing, or identifying and testing controls over, the accuracy and completeness of the report. (AS 1105.10; AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the relevance and reliability of certain external information used in its substantive procedures to test certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the relevance and reliability of certain external information used in its substantive procedures to test certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "D", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2305", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "In addition, the firm performed a substantive analytical procedure to test this revenue. The firm developed its expectations for revenue using external data. The firm did not evaluate whether this data was sufficiently reliable for purposes of achieving its audit objective. (AS 2305.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the relevance and reliability of certain external data it used to test certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "587", "Firm Names": "RBSM LLP", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "E", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the relevance and reliability of certain external data it used to test certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used certain qualitative factors to determine the qualitative reserve component of the ACLL. The firm selected for testing a control over the issuer's review of the qualitative reserve component. The firm did not evaluate the specific review procedures that the control owner performed to (1) evaluate the reasonableness of the assumptions used to develop the qualitative reserve component and (2) test the accuracy and completeness of the data used in the operation of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used certain qualitative factors to determine the qualitative reserve component of the ACLL. The firm selected for testing a control over the issuer's review of the qualitative reserve component. The firm did not evaluate the specific review procedures that the control owner performed to (1) evaluate the reasonableness of the assumptions used to develop the qualitative reserve component and (2) test the accuracy and completeness of the data used in the operation of the control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used certain qualitative factors to determine the qualitative reserve component of the ACLL. The firm selected for testing a control over the issuer's review of the qualitative reserve component. The firm's approach for substantively testing the qualitative component of the ACLL was to test the issuer's process. The firm did not perform any procedures to evaluate the reasonableness of significant assumptions used by the issuer to develop the qualitative component of the ACLL. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not select journal entries and other adjustments that met its identified fraud characteristics for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's review of the ACLL. The firm did not evaluate the specific review procedures that the control owners performed to (1) evaluate the reasonableness of the assumptions used to develop the ACLL and (2) test the accuracy and completeness of the data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls that consisted of the issuer's review of the ACLL. The firm did not evaluate the specific review procedures that the control owners performed to (1) evaluate the reasonableness of the assumptions used to develop the ACLL and (2) test the accuracy and completeness of the data used in the operation of these controls. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "613", "Firm Names": "Yount, Hyde & Barbour, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit/Loan Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the ACLL was to test the issuer's process. The firm did not perform any procedures to evaluate the reasonableness of significant assumptions used by the issuer to develop the ACLL. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "655", "Firm Names": "CliftonLarsonAllen LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "20", "Description in the Firm's Inspection Report": "The issuer engaged an external pricing service to provide security pricing for its investment securities. The firm used the pricing information from this pricing provider as audit evidence. The firm did not evaluate whether the pricing information provided sufficient appropriate audit evidence because it did not evaluate the relevance and reliability of the pricing information obtained from this pricing provider. (AS 2501.20, .A2, .A4, and .A5)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "655", "Firm Names": "CliftonLarsonAllen LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer engaged an external pricing service to provide security pricing for its investment securities. The firm used the pricing information from this pricing provider as audit evidence. The firm did not evaluate whether the pricing information provided sufficient appropriate audit evidence because it did not evaluate the relevance and reliability of the pricing information obtained from this pricing provider. (AS 2501.20, .A2, .A4, and .A5)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "655", "Firm Names": "CliftonLarsonAllen LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer engaged an external pricing service to provide security pricing for its investment securities. The firm used the pricing information from this pricing provider as audit evidence. The firm did not evaluate whether the pricing information provided sufficient appropriate audit evidence because it did not evaluate the relevance and reliability of the pricing information obtained from this pricing provider. (AS 2501.20, .A2, .A4, and .A5)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "655", "Firm Names": "CliftonLarsonAllen LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer engaged an external pricing service to provide security pricing for its investment securities. The firm used the pricing information from this pricing provider as audit evidence. The firm did not evaluate whether the pricing information provided sufficient appropriate audit evidence because it did not evaluate the relevance and reliability of the pricing information obtained from this pricing provider. (AS 2501.20, .A2, .A4, and .A5)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nFor one of these expectations, the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it used to develop the expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nFor one of these expectations, the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it used to develop the expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nFor one of these expectations, the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's work did not provide sufficient appropriate audit evidence, because the auditor-employed specialist did not perform procedures to demonstrate it had a reasonable basis for a significant assumption it used to develop the expectation. (AS 1201.C6 and .C7; AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nFor the other expectation, the firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's conclusion appeared to contradict the issuer's assertion that these assets were not impaired and perform additional procedures or request the auditor-employed specialist to perform additional procedures, to address the issue. (AS 1201.C7)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C6", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's evaluation of events occurring after the measurement date did not provide sufficient appropriate audit evidence, because it did not take into account certain changes in the issuer's circumstances and other relevant conditions during the evaluation period. (AS 1201.C6 and .C7; AS 2501.28 and .29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1201", "Paragraph of the Auditing Standard": "C7", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's evaluation of events occurring after the measurement date did not provide sufficient appropriate audit evidence, because it did not take into account certain changes in the issuer's circumstances and other relevant conditions during the evaluation period. (AS 1201.C6 and .C7; AS 2501.28 and .29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's evaluation of events occurring after the measurement date did not provide sufficient appropriate audit evidence, because it did not take into account certain changes in the issuer's circumstances and other relevant conditions during the evaluation period. (AS 1201.C6 and .C7; AS 2501.28 and .29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "The issuer performed an assessment of certain assets for possible impairment using forecasted cash flows that assumed significant revenue growth, and the firm used an auditor-employed specialist to assist it with testing the issuer's impairment assessment. The auditor-employed specialist's approach consisted of (1) developing expectations of the value-in-use of these assets and (2) evaluating events occurring after the measurement date. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the work of the auditor-employed specialist and identify that the auditor-employed specialist's evaluation of events occurring after the measurement date did not provide sufficient appropriate audit evidence, because it did not take into account certain changes in the issuer's circumstances and other relevant conditions during the evaluation period. (AS 1201.C6 and .C7; AS 2501.28 and .29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "During the year, the issuer capitalized costs associated with certain of these assets. The firm did not perform procedures to evaluate whether, in conformity with relevant GAAP, the issuer met certain criteria necessary to capitalize these costs beyond inquiry of management and a review of the issuer's internal plans. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "989", "Firm Names": "Richter S.E.N.C.R.L./LLP", "Inspection Year": "2024", "Country": "Canada", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Certain Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "During the year, the issuer capitalized costs associated with certain of these assets. The firm did not perform procedures to evaluate whether, in conformity with relevant GAAP, the issuer met certain criteria necessary to capitalize these costs beyond inquiry of management and a review of the issuer's internal plans. (AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1013", "Firm Names": "Urish Popeck & Company, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reliability of certain information it obtained from external sources that it used in its substantive procedures for certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1013", "Firm Names": "Urish Popeck & Company, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform procedures to evaluate the reliability of certain information it obtained from external sources that it used in its substantive procedures for certain revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1013", "Firm Names": "Urish Popeck & Company, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate whether the issuer's recognition of certain revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1013", "Firm Names": "Urish Popeck & Company, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate whether the issuer's recognition of certain revenue was in conformity with FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1103", "Firm Names": "Samil PricewaterhouseCoopers", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used multiple information-technology (IT) systems to initiate, process, and record revenue. In its testing of controls over certain revenue, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by these IT systems. As a result of the following deficiencies in the firm's testing of IT general controls (ITGCs) over certain of these IT systems, the firm's testing of these automated and IT-dependent controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1103", "Firm Names": "Samil PricewaterhouseCoopers", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used multiple information-technology (IT) systems to initiate, process, and record revenue. The firm selected for testing certain ITGCs over user access to these IT systems. Management asserted that logical access to these IT systems was controlled through a third-party hosted IT solution used by the issuer, and the firm obtained and evaluated a service auditor's report from this third-party hosted IT solution. The firm did not perform procedures to verify this assertion beyond inquiry of management and, therefore, the firm did not establish a basis to conclude that the logical access to these IT systems was only controlled through this third-party hosted IT solution. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1103", "Firm Names": "Samil PricewaterhouseCoopers", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe issuer used multiple information-technology (IT) systems to initiate, process, and record revenue. The firm selected for testing certain ITGCs over user access to these IT systems. Management asserted that logical access to these IT systems was controlled through a third-party hosted IT solution used by the issuer, and the firm obtained and evaluated a service auditor's report from this third-party hosted IT solution. The firm did not perform procedures to verify this assertion beyond inquiry of management and, therefore, the firm did not establish a basis to conclude that the logical access to these IT systems was only controlled through this third-party hosted IT solution. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1103", "Firm Names": "Samil PricewaterhouseCoopers", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used system-generated data to substantively test certain revenue but did not test, or sufficiently test controls over, the accuracy and completeness of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1103", "Firm Names": "Samil PricewaterhouseCoopers", "Inspection Year": "2023", "Country": "South Korea", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiencies below.\nThe firm used payment information produced by a third-party service organization used by the issuer to substantively test certain revenue but did not perform any procedures to test the accuracy and completeness of this information. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1297", "Firm Names": "KPMG Audit Limited", "Inspection Year": "2023", "Country": "Bermuda", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1297", "Firm Names": "KPMG Audit Limited", "Inspection Year": "2023", "Country": "Bermuda", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate departures from GAAP related to the issuer's omission of certain disclosures required by FASB ASC Topic 825, Financial Instruments. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1297", "Firm Names": "KPMG Audit Limited", "Inspection Year": "2023", "Country": "Bermuda", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to certain errors in a disclosure required by FASB ASC Topic 944, Financial Services - Insurance. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1297", "Firm Names": "KPMG Audit Limited", "Inspection Year": "2023", "Country": "Bermuda", "Global Network": "KPMG International Cooperative", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Insurance-Related Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to certain errors in a disclosure required by FASB ASC Topic 944, Financial Services - Insurance. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2866", "Firm Names": "Accuity LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimates", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to develop an estimate. The firm did not test the accuracy and completeness of issuer-produced data that the company's specialist used to develop the estimate. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2866", "Firm Names": "Accuity LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Estimates", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test another estimate, beyond reconciling the amount to a confirmation. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not test the valuation of certain digital assets at year end. (AS 2501.07)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not evaluate the appropriateness of the issuer's presentation of digital assets. (AS 2301.08 and .13)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not evaluate the appropriateness of the issuer's presentation of digital assets. (AS 2301.08 and .13)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not evaluate the relevance and reliability of external data it used to test digital assets. (AS 1105.04 and .06)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not evaluate the relevance and reliability of external data it used to test digital assets. (AS 1105.04 and .06)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not perform any procedures to establish that the issuer had control over the digital assets to support its rights and obligations. (AS 2301.08 and .13)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Digital Assets", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe issuer reported digital assets. The following deficiency was identified:\n· The firm did not perform any procedures to establish that the issuer had control over the digital assets to support its rights and obligations. (AS 2301.08 and .13)\nUnrelated to our review, the issuer reevaluated its accounting for certain digital assets and concluded that a material misstatement existed that had not been previously identified. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected this misstatement in a subsequent filing by revising the presentation, and the firm revised and reissued its report on the financial statements." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain revenue, the firm did not test whether (1) a contractual arrangement was entered into with the customer, (2) the issuer satisfied its performance obligations prior to the recognition of revenue, (3) the issuer had rights and obligations to the customer payments, and (4) the rate charged to the customer was in accordance with the terms of the arrangement. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nWith respect to certain revenue, the firm did not test whether (1) a contractual arrangement was entered into with the customer, (2) the issuer satisfied its performance obligations prior to the recognition of revenue, (3) the issuer had rights and obligations to the customer payments, and (4) the rate charged to the customer was in accordance with the terms of the arrangement. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not evaluate the relevance and reliability of external data it used to test this revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not evaluate the relevance and reliability of external data it used to test this revenue. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Other Income", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed these areas but did not identify the deficiencies below.\nThe firm did not perform procedures, beyond obtaining a management representation letter, to test other income, including evaluating whether the issuer's accounting for the recognition of other income was in conformity with GAAP. (AS 2301.08)The firm did not perform procedures, beyond obtaining a management representation letter, to test other income, including evaluating whether the issuer's accounting for the recognition of other income was in conformity with GAAP. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the fair value of certain significant accounts, including consideration of contradictory information that was included in the work papers. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Significant Accounts", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "3", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to test the fair value of certain significant accounts, including consideration of contradictory information that was included in the work papers. (AS 2501.07; AS 2810.03)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to perform its annual goodwill impairment analyses. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to perform its annual goodwill impairment analyses. The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions used by the company's specialist. (AS 1105.A8b; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3487", "Firm Names": "AUDIT ALLIANCE LLP", "Inspection Year": "2023", "Country": "Singapore", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Goodwill", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a valuation specialist to perform its annual goodwill impairment analyses. The firm did not perform any procedures to evaluate the relevance and reliability of external data, and test the accuracy and completeness of issuer-prepared data, that the company's specialist used to develop certain significant assumptions. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "24", "Description in the Firm's Inspection Report": "The firm's approach for testing one type of revenue included performing tests of details for a sample of transactions from one day during the year. The firm did not perform any procedures to test the population of transactions in the remaining days of the year. (AS 2315.24)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's approach for testing one type of revenue included performing tests of details for a sample of transactions from one day during the year. The firm did not perform sufficient procedures to test the transaction price for the sample of transactions, because it limited its procedures to testing that the issuer received certain cash. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's approach for testing one type of revenue included performing tests of details for a sample of transactions from one day during the year. The firm did not perform sufficient procedures to test the transaction price for the sample of transactions, because it limited its procedures to testing that the issuer received certain cash. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm's approach for testing a second type of revenue included performing tests of details for a sample of transactions. The firm identified differences in its testing for certain transactions. The firm did not (1) consider the nature and cause of the differences; (2) project the differences to the remaining revenue population; and (3) evaluate the results and take appropriate action. (AS 2315.26, .27, and .28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "The firm's approach for testing a second type of revenue included performing tests of details for a sample of transactions. The firm identified differences in its testing for certain transactions. The firm did not (1) consider the nature and cause of the differences; (2) project the differences to the remaining revenue population; and (3) evaluate the results and take appropriate action. (AS 2315.26, .27, and .28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm's approach for testing a second type of revenue included performing tests of details for a sample of transactions. The firm identified differences in its testing for certain transactions. The firm did not (1) consider the nature and cause of the differences; (2) project the differences to the remaining revenue population; and (3) evaluate the results and take appropriate action. (AS 2315.26, .27, and .28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test a third type of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test a third type of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the allowance for doubtful accounts was to develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test controls over, the accuracy of certain data it used to develop its independent expectation. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the allowance for doubtful accounts was to develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not perform any procedures to demonstrate it had a reasonable basis for certain assumptions it developed and used in determining its independent expectation. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the allowance for doubtful accounts was to develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not compare its independent expectation to the issuer's recorded allowance for doubtful accounts and evaluate the difference. (AS 2501.26; AS 2810.13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the allowance for doubtful accounts was to develop an independent expectation. The following deficiency was identified:\n·\nThe firm did not compare its independent expectation to the issuer's recorded allowance for doubtful accounts and evaluate the difference. (AS 2501.26; AS 2810.13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash and Cash Equivalents", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The firm sent positive confirmation requests for cash and cash equivalents balances and used an external party to receive the confirmation responses. The firm did not maintain control of the confirmation responses through direct communication with the intended recipients of the confirmation requests. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "9", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm did not perform procedures to test, or test controls over, the accuracy of certain system-generated data that it used to test certain revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "6781", "Firm Names": "YCM CPA INC.", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "27-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm identified fraud criteria for journal entries and obtained a listing of all journal entries that met the criteria. The firm did not perform sufficient substantive procedures to test those journal entries, because it limited its procedures to certain journal entries without having an appropriate rationale for limiting its testing to those journal entries. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Acquisition of Assets", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "During the year, the issuer acquired certain assets and engaged a specialist to assist in determining the fair value of these assets. The firm did not perform substantive procedures to test the fair value of these assets, beyond obtaining and reading the company's specialist's report and testing the accuracy and completeness of certain issuer-produced data used to determine the fair value of the assets. Further, the firm did not perform procedures with respect to its use of the work of the company's specialist as audit evidence, beyond assessing the knowledge, skill, and ability of the company's specialist. (AS 1105.A4 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8a", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist in determining the fair value of mortgage servicing rights. The following deficiency was identified:\n· The firm did not perform any procedures to evaluate the relevance and reliability of data from external sources that the company's specialist used. (AS 1105.A8a)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "52", "Firm Names": "Berkowitz Pollack Brant Advisors + CPAs, LLP", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Mortgage Servicing Rights", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8b", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to assist in determining the fair value of mortgage servicing rights. The following deficiency was identified:\n· The firm did not perform any procedures to evaluate the reasonableness of certain significant assumptions developed by the company's specialist. (AS 1105.A8b)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "430", "Firm Names": "Coulter & Justus, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm sent a positive confirmation request to the issuer's investment custodian, which was returned by the issuer's recordkeeper. The firm did not evaluate the relevance and reliability of the confirmation response and whether alternative procedures were necessary because the confirmation was not obtained from the intended recipient. (AS 1105.04 and .06; AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "430", "Firm Names": "Coulter & Justus, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm sent a positive confirmation request to the issuer's investment custodian, which was returned by the issuer's recordkeeper. The firm did not evaluate the relevance and reliability of the confirmation response and whether alternative procedures were necessary because the confirmation was not obtained from the intended recipient. (AS 1105.04 and .06; AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "430", "Firm Names": "Coulter & Justus, P.C.", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm sent a positive confirmation request to the issuer's investment custodian, which was returned by the issuer's recordkeeper. The firm did not evaluate the relevance and reliability of the confirmation response and whether alternative procedures were necessary because the confirmation was not obtained from the intended recipient. (AS 1105.04 and .06; AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries, the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries:\n·\nThe firm did not perform any procedures to evaluate whether (1) multiple contracts entered into at or near the same time with the same customer should be accounted for as a single contract, and (2) costs associated with certain contracts were appropriately recorded as a reduction of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries, the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries:\n·\nThe firm did not perform any procedures to evaluate whether (1) multiple contracts entered into at or near the same time with the same customer should be accounted for as a single contract, and (2) costs associated with certain contracts were appropriately recorded as a reduction of revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries, the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries:\n·\nThe firm did not perform procedures to evaluate whether all performance obligations were appropriately identified, beyond obtaining and reading an issuer-prepared memo related to revenue recognition policies. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources through its subsidiaries. To test revenue from two subsidiaries, the firm selected revenue transactions for testing. The following deficiency was identified related to these subsidiaries:\n·\nThe firm did not perform procedures to evaluate whether all performance obligations were appropriately identified, beyond obtaining and reading an issuer-prepared memo related to revenue recognition policies. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain revenue disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate a departure from GAAP related to the issuer's omission of certain revenue disclosures required by FASB ASC Topic 606, Revenue from Contracts with Customers. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of certain significant assumptions, including taking into account the issuer's intent and ability to carry out those assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "17", "Description in the Firm's Inspection Report": "The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of certain significant assumptions, including taking into account the issuer's intent and ability to carry out those assumptions. (AS 2501.16 and .17)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain issuer-produced data and reports it used in developing an independent expectation of another significant assumption. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer identified indicators of impairment for certain intangible assets and estimated undiscounted cash flows to assess the recoverability of those intangible assets. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of certain other significant assumptions, beyond comparing prior year issuer forecasted amounts to prior year actual amounts. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources. The firm did not identify and evaluate a departure from GAAP related to (1) the issuer's omission of a revenue-related disclosure required by FASB ASC Topic 280, Segment Reporting, and (2) the issuer's inaccurate disclosure regarding the amount of a certain type of revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "457", "Firm Names": "Haynie & Company", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple sources. The firm did not identify and evaluate a departure from GAAP related to (1) the issuer's omission of a revenue-related disclosure required by FASB ASC Topic 280, Segment Reporting, and (2) the issuer's inaccurate disclosure regarding the amount of a certain type of revenue. (AS 2810.30 and .31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "759", "Firm Names": "Seligson & Giannattasio CPAs PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer's omission of certain required disclosures related to FASB ASC Topic 606, Revenue from Contracts with Customers, and FASB ASC Topic 842, Leases. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its revenue and lease disclosures and determined certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "759", "Firm Names": "Seligson & Giannattasio CPAs PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "30", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Revenue but did not identify the deficiency below.\nThe firm did not identify and evaluate the issuer's omission of certain required disclosures related to FASB ASC Topic 606, Revenue from Contracts with Customers, and FASB ASC Topic 842, Leases. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its revenue and lease disclosures and determined certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "759", "Firm Names": "Seligson & Giannattasio CPAs PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Leases", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm did not identify and evaluate the issuer's omission of certain required disclosures related to FASB ASC Topic 606, Revenue from Contracts with Customers, and FASB ASC Topic 842, Leases. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its revenue and lease disclosures and determined certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "759", "Firm Names": "Seligson & Giannattasio CPAs PC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2810", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed Revenue but did not identify the deficiency below.\nThe firm did not identify and evaluate the issuer's omission of certain required disclosures related to FASB ASC Topic 606, Revenue from Contracts with Customers, and FASB ASC Topic 842, Leases. (AS 2810.30 and .31)\nIn connection with our review, the issuer reevaluated its revenue and lease disclosures and determined certain disclosures were omitted. The issuer did not file an amended Form 10-K or a Form 8-K indicating that its previously issued financial statements should not be relied on. Instead, the issuer corrected these omissions in a subsequent filing." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review and approval of certain studies performed to assess the reasonableness of the assumptions used by the issuer to determine a quantitative reserve component of the ACL. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review and approval of certain studies performed to assess the reasonableness of the assumptions used by the issuer to determine a quantitative reserve component of the ACL. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing two controls that consisted of management's review and approval of the models used by the issuer and the issuer's calculation of a complementary reserve component of the ACL. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of a post-model adjustment included in this component of the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing two controls that consisted of management's review and approval of the models used by the issuer and the issuer's calculation of a complementary reserve component of the ACL. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of a post-model adjustment included in this component of the ACL. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's monitoring of customers' financial condition through the use of a color-coded monitoring system to identify economic groups that experienced a decline in credit quality. The firm did not identify and test any controls over the accuracy and completeness of the data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's monitoring of customers' financial condition through the use of a color-coded monitoring system to identify economic groups that experienced a decline in credit quality. The firm did not evaluate the specific review procedures that the control owner performed to identify economic groups, which experienced a decline in credit quality. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's monitoring of customers' financial condition through the use of a color-coded monitoring system to identify economic groups that experienced a decline in credit quality. The firm did not evaluate the specific review procedures that the control owner performed to identify economic groups, which experienced a decline in credit quality. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review and approval of the economic risk ratings used by the issuer to determine the quantitative component of the ACL. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of these economic risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review and approval of the economic risk ratings used by the issuer to determine the quantitative component of the ACL. The firm did not evaluate the specific review procedures that the control owner performed to assess the reasonableness of these economic risk ratings. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the valuation of assets collateralizing certain loans. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not evaluate whether the method used by the issuer, in certain models, to determine a complementary reserve component of the ACL was in conformity with the requirements of IFRS. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not evaluate the reasonableness of the significant assumptions used by the issuer in these models. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Allowance for Credit Losses", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "9", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer's ACL was comprised of various components, including quantitative and complementary reserve components, and the issuer used various models and assumptions to determine the individual components of the ACL. The firm's approach for substantively testing the ACL was to test the issuer's process. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of certain significant assumptions used by the issuer to determine the quantitative component of the ACL beyond, for one such assumption consisting of loan risk ratings, testing the mathematical accuracy of certain inputs for a sample of the issuer's risk rating models. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over revenue that consisted of (1) management's review of information related to order entry, shipping, invoicing, and accounts receivable and (2) the issuer's performance of a gross to net revenue analysis. The firm did not identify and test any controls over the accuracy and completeness of certain reports used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over revenue that consisted of (1) management's review of information related to order entry, shipping, invoicing, and accounts receivable and (2) the issuer's performance of a gross to net revenue analysis. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing two controls over revenue that consisted of (1) management's review of information related to order entry, shipping, invoicing, and accounts receivable and (2) the issuer's performance of a gross to net revenue analysis. The firm did not evaluate the review procedures that the control owners 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control over inventory that consisted of management's review of standard versus actual costs used by the issuer to record inventory. The firm did not identify and test any controls over the accuracy and completeness of a report used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1351", "Firm Names": "PricewaterhouseCoopers Auditores Independentes Ltda.", "Inspection Year": "2023", "Country": "Brazil", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "ICFR audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Allowance for Doubtful Accounts", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's internal inspection program had inspected this audit and reviewed this area but did not identify the deficiency below.\nThe firm selected for testing a control over accounts receivable that consisted of management's review and approval of the allowance for doubtful accounts. The firm did not identify and test any controls over the accuracy and completeness of certain system-generated data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1419", "Firm Names": "Ohrlings PricewaterhouseCoopers AB", "Inspection Year": "2023", "Country": "Sweden", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of the recognition of certain revenue. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1419", "Firm Names": "Ohrlings PricewaterhouseCoopers AB", "Inspection Year": "2023", "Country": "Sweden", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of the recognition of certain revenue. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1419", "Firm Names": "Ohrlings PricewaterhouseCoopers AB", "Inspection Year": "2023", "Country": "Sweden", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing a control that consisted of management's review of the recognition of certain revenue. The firm did not identify and test any controls over the accuracy and completeness of a system-generated report that control owners used in the operation of this control and certain other controls that were selected for testing related to revenue. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1419", "Firm Names": "Ohrlings PricewaterhouseCoopers AB", "Inspection Year": "2023", "Country": "Sweden", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm used a system-generated report to substantively test certain revenue but did not test, or (as discussed above) test controls over, the accuracy and completeness of this report. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1419", "Firm Names": "Ohrlings PricewaterhouseCoopers AB", "Inspection Year": "2023", "Country": "Sweden", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to address an identified fraud risk related to revenue. (AS 2301.13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe firm selected for testing controls over certain revenue and related accounts receivable that consisted of (1) the issuer's performance of consistency checks between its systems that track the delivery of services and other systems where sales orders are manually entered as received and (2) management's review of the exception reports produced from these checks that reflect anomalies in the data between the various systems. The firm did not identify and test any controls over the accuracy and completeness of the exception reports used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe firm selected for testing controls over certain revenue and related accounts receivable that consisted of (1) the issuer's performance of consistency checks between its systems that track the delivery of services and other systems where sales orders are manually entered as received and (2) management's review of the exception reports produced from these checks that reflect anomalies in the data between the various systems. The firm did not identify and test any controls over the accuracy and completeness of the exception reports used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the occurrence of certain revenue. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe firm did not perform any substantive procedures to test the occurrence of certain revenue. AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n· The sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1756", "Firm Names": "Deloitte & Associes", "Inspection Year": "2023", "Country": "France", "Global Network": "Deloitte Touche Tohmatsu Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer recognized revenue from multiple revenue streams. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and related accounts receivable were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiency in the firm's control testing discussed in the first bullet above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2743", "Firm Names": "PricewaterhouseCoopers Japan LLC", "Inspection Year": "2023", "Country": "Japan", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain revenue, the customer purchase order information is transferred from customers to the issuer's enterprise resource planning system (ERPS) through a service organization. For certain other revenue, customer purchase order and shipment information are aggregated by other service organizations and transferred to the issuer's ERPS. The following deficiency was identified:\n·\nThe firm selected for testing certain controls over revenue that consisted of the issuer's (1) review of certain information transmitted from one of the service organizations to its ERPS and (2) reconciliation of information transmitted from another service organization to its ERPS. The firm did not identify and test any controls over the accuracy and/or completeness of certain information used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2743", "Firm Names": "PricewaterhouseCoopers Japan LLC", "Inspection Year": "2023", "Country": "Japan", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain revenue, the customer purchase order information is transferred from customers to the issuer's enterprise resource planning system (ERPS) through a service organization. For certain other revenue, customer purchase order and shipment information are aggregated by other service organizations and transferred to the issuer's ERPS. The following deficiency was identified:\n·\nThe firm did not perform any procedures to test the accuracy and completeness of certain information provided by the service organizations used in its substantive testing of revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "2743", "Firm Names": "PricewaterhouseCoopers Japan LLC", "Inspection Year": "2023", "Country": "Japan", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm selected for testing certain controls over inventory that consisted of the issuer's (1) review of order shipment status, (2) review of inventory quantities between the issuer's ERPS and various other systems, (3) performance of physical inventory counts, and (4) review and approval of inventory adjustments unrelated to the physical inventory counts. The firm did not identify and test any controls over the completeness and/or accuracy of certain data used in the operation of these controls. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform sufficient procedures to test the relevance and reliability of the external data because it limited its procedures to (1) confirming the data with two of the external sources and (2) verifying that certain information was appropriately captured by certain of the external sources. (AS 1105.04 and.06)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform sufficient procedures to test the relevance and reliability of the external data because it limited its procedures to (1) confirming the data with two of the external sources and (2) verifying that certain information was appropriately captured by certain of the external sources. (AS 1105.04 and.06)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform sufficient procedures to test the relevance and reliability of the external data because it limited its procedures to (1) confirming the data with two of the external sources and (2) verifying that certain information was appropriately captured by certain of the external sources. (AS 1105.04 and.06)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform sufficient procedures to test the relevance and reliability of the external data because it limited its procedures to (1) confirming the data with two of the external sources and (2) verifying that certain information was appropriately captured by certain of the external sources. (AS 1105.04 and.06)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform any procedures to test certain revenue transactions selected for testing. (AS 2301.08)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer recognized certain revenue and computed the related deferred revenue using an assumption that it developed from data obtained from external sources. The firm performed certain procedures to test this external data. The firm also performed a test of details on a sample of revenue transactions to test the occurrence of this revenue. The following deficiency was identified:\n· The firm did not perform any procedures to test certain revenue transactions selected for testing. (AS 2301.08)\nIn connection with our review, the firm determined that it would be unable to perform additional procedures to obtain sufficient appropriate audit evidence regarding the relevance and reliability of the external data and withdrew its report on the issuer's financial statements. Shortly after the firm withdrew its report, the issuer withdrew its registration statement on Form F-1." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "31", "Description in the Firm's Inspection Report": "To test the existence of accounts receivable, the firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable as of either an interim date or year-end. To extend its conclusions from the interim date to year-end, the firm tested the respective customer's year-end account balances by agreeing subsequent cash collections from those customers to the issuer's bank statements. The following deficiency was identified:\n· For positive confirmation requests for which the firm did not receive a response, the firm did not perform alternative procedures that provided sufficient appropriate audit evidence that the recorded amounts of the receivables were accurate as of the confirmation date. (AS 2310.31)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3080", "Firm Names": "Ernst & Young Vietnam Limited", "Inspection Year": "2023", "Country": "Vietnam", "Global Network": "Ernst & Young Global Limited", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accounts Receivable", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "45", "Description in the Firm's Inspection Report": "To test the existence of accounts receivable, the firm sent positive confirmation requests to the issuer's customers for a sample of accounts receivable as of either an interim date or year-end. To extend its conclusions from the interim date to year-end, the firm tested the respective customer's year-end account balances by agreeing subsequent cash collections from those customers to the issuer's bank statements. The following deficiency was identified:\n· The firm did not perform sufficient procedures to extend its conclusions from the interim date to year-end because it did not perform any procedures to (1) evaluate whether the subsequent cash collections tested related to the customers' year-end account balances and (2) test any uncollected portion of the customers' year-end account balances. (AS 2301.45)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3707", "Firm Names": "R&A CPAs PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "4", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain external data it used to test the fair value of certain investments. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "3707", "Firm Names": "R&A CPAs PLLC", "Inspection Year": "2024", "Country": "United States", "Global Network": "", "Inspection Report Date": "12-Sep-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with a single deficiency", "Audit Area": "Investment Securities", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "6", "Description in the Firm's Inspection Report": "The firm did not perform any procedures to evaluate the reliability of certain external data it used to test the fair value of certain investments. (AS 1105.04 and .06)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The firm did not perform any substantive procedures to test certain revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "27", "Description in the Firm's Inspection Report": "To test certain debt, the firm selected transactions exceeding a monetary threshold. The firm did not perform procedures to test the remaining population of transactions. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "To test certain debt, the firm selected transactions exceeding a monetary threshold. The firm did not perform procedures to test the remaining population of transactions. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "To test certain debt, the firm selected transactions exceeding a monetary threshold. The firm did not perform procedures to test the remaining population of transactions. (AS 1105.27; AS 2301.08 and .11)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Debt", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": " The firm did not perform procedures to test, or identify and test any controls over, the accuracy of certain issuer-produced data it used in its substantive procedures. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Derivative Liabilities", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer engaged a specialist to determine the fair value of its derivative liabilities. The firm did not perform substantive procedures to test the fair value of the derivative liabilities, beyond obtaining and reading the valuation report prepared by the company's specialist, inquiry of the issuer, and performing a sensitivity analysis. Further, the firm did not perform any procedures to evaluate the work of the company's specialist. (AS 1105.A6 -.A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "5", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not consider the characteristics of potentially fraudulent journal entries when identifying and selecting journal entries for testing. Further, the firm did not examine the underlying support for the journal entries selected for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer reported intangible assets at several reporting units and evaluated them for impairment using undiscounted cash flow analyses. The firm's approach to test the issuer's impairment analyses was to test the issuer's process and develop an independent expectation of the undiscounted cash flows for each reporting unit. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of certain significant assumptions used by the issuer to develop its undiscounted cash flows, because it limited its procedures to evaluating the consistency of the assumptions with historical experience. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "22", "Description in the Firm's Inspection Report": "The issuer reported intangible assets at several reporting units and evaluated them for impairment using undiscounted cash flow analyses. The firm's approach to test the issuer's impairment analyses was to test the issuer's process and develop an independent expectation of the undiscounted cash flows for each reporting unit. The following deficiency was identified:\n·\nThe firm did not perform any procedures to demonstrate it had a reasonable basis for certain assumptions it developed and used to determine its independent expectations. (AS 2501.22)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Intangible Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer reported intangible assets at several reporting units and evaluated them for impairment using undiscounted cash flow analyses. The firm's approach to test the issuer's impairment analyses was to test the issuer's process and develop an independent expectation of the undiscounted cash flows for each reporting unit. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether the method used by the issuer to develop the impairment analyses was in conformity with FASB ASC Topic 360, Property, Plant, and Equipment, because it did not evaluate whether the carrying values of the reporting unit used by the issuer in its impairment analyses were consistent with the carrying values of the asset group as defined in FASB ASC Topic 360. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "318", "Firm Names": "L J Soldinger Associates, LLC", "Inspection Year": "2023", "Country": "United States", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Journal Entries", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2401", "Paragraph of the Auditing Standard": "61", "Description in the Firm's Inspection Report": "The firm did not consider the characteristics of potentially fraudulent journal2501 entries when identifying and selecting journal entries for testing. Further, the firm did not examine the underlying support for the journal entries selected for testing. (AS 2401.61)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1173", "Firm Names": "Dale Matheson Carr-Hilton LaBonte LLP", "Inspection Year": "2023", "Country": "Canada", "Global Network": "", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Long-Lived Assets", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "21", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the issuer's impairment analyses for certain long-lived assets was to develop independent expectations. The firm did not sufficiently take into account the requirements of certain elements of the applicable financial framework because it did not take into account certain factors relevant to the estimates in developing its expectations. (AS 2501.21)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform procedures to test, or test any controls over, the accuracy and completeness of certain IT system data used in its substantive testing of revenue. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to test the occurrence of certain revenue because the firm did not perform any procedures to test whether the performance obligations had been met prior to the recognition of the revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to test the occurrence of certain revenue because the firm did not perform any procedures to test whether the performance obligations had been met prior to the recognition of the revenue. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in conformity with IFRS 15, Revenue from Contracts with Customers, because the firm limited its procedures to revenue recognized from a single customer and did not perform any procedures to evaluate the issuer's recognition of revenue from the remaining customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate whether the issuer recognized certain revenue in conformity with IFRS 15, Revenue from Contracts with Customers, because the firm limited its procedures to revenue recognized from a single customer and did not perform any procedures to evaluate the issuer's recognition of revenue from the remaining customers. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the sufficiency of the issuer's disclosures regarding certain of its revenue recognition policies. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "13", "Description in the Firm's Inspection Report": "The following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the sufficiency of the issuer's disclosures regarding certain of its revenue recognition policies. (AS 2301.08 and .13)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "26", "Description in the Firm's Inspection Report": "To test cash, the firm's substantive procedures included confirmation procedures in which confirmation requests were sent electronically to email addresses provided by the issuer. The following deficiency was identified:\n·\nThe firm did not perform procedures to determine whether the confirmation requests were directed to third parties who were knowledgeable about the information to be confirmed. (AS 2310.26)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Financial statement audit only", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Cash", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "To test cash, the firm's substantive procedures included confirmation procedures in which confirmation requests were sent electronically to email addresses provided by the issuer. The following deficiency was identified:\n·\nThe firm received electronic responses to four of the five confirmation requests. The firm did not consider performing procedures to address the risks associated with electronic responses, such as verifying the source of the confirmation responses. (AS 2310.29)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of a billing workbook to ensure that the calculations and billing details were accurate. The firm did not identify and test any controls over the accuracy and completeness of a system-generated report and the accuracy of certain other data used in the operation of this control. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of a billing workbook to ensure that the calculations and billing details were accurate. The firm did not evaluate the specific review procedures that the control owner performed to identify billing changes for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing a control that consisted of management's review of a billing workbook to ensure that the calculations and billing details were accurate. The firm did not evaluate the specific review procedures that the control owner performed to identify billing changes for review. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing another control that consisted of management's review of the revenue fluctuations and related explanations in the billing workbook. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the accuracy and completeness of the revenue data used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing another control that consisted of management's review of the revenue fluctuations and related explanations in the billing workbook. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the reasonableness of the revenue fluctuations and determine whether the explanations for the fluctuations supported the accuracy of the revenue calculations (AS 2201.44)." }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm selected for testing another control that consisted of management's review of the revenue fluctuations and related explanations in the billing workbook. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the accuracy and completeness of the revenue data used in the operation of this control. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "28", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm's approach for testing revenue included sending confirmation requests to a sample of the issuer's customers. The issuer electronically sent the confirmation requests to the customers on behalf of the firm and the firm received the responses to the confirmation requests electronically. The firm did not maintain control over the confirmation requests through direct communication with the intended recipients of the confirmation requests. (AS 2310.28)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1185", "Firm Names": "Ziv Haft Certified Public Accountants (Isr.)", "Inspection Year": "2022", "Country": "Israel", "Global Network": "BDO International Limited", "Inspection Report Date": "22Aug2024", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "Yes", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2310", "Paragraph of the Auditing Standard": "29", "Description in the Firm's Inspection Report": "The issuer used certain IT systems to process and record transactions related to revenue. The following deficiency was identified:\n·\nThe firm's approach for testing revenue included sending confirmation requests to a sample of the issuer's customers. 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the completeness of the assets included in the issuer's components and CGUs. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the (1) accuracy and completeness of the data produced by the issuer, (2) relevance and reliability of information obtained from external sources, (3) reasonableness of certain significant assumptions, and (4) appropriateness of the methods, used by the company's specialists to develop their assumptions. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm selected for testing a control that included the issuer's review of its components and CGUs for indicators of potential impairment, including a review of the composition of the components and CGUs. The firm did not evaluate the specific review procedures that the control owner performed to assess (1) whether the occurrence of certain events represented indicators of potential impairment and (2) the composition of the components and CGUs to determine whether they represented the smallest identifiable group of assets that generated independent cash inflows. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "3", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm selected for testing a control that included the issuer's review of its components and CGUs for indicators of potential impairment, including a review of the composition of the components and CGUs. The firm did not evaluate the specific review procedures that the control owner performed to assess (1) whether the occurrence of certain events represented indicators of potential impairment and (2) the composition of the components and CGUs to determine whether they represented the smallest identifiable group of assets that generated independent cash inflows. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "4", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate whether the method the issuer used to perform its impairment analyses was in conformity with the applicable financial reporting framework, including the requirements of International Accounting Standard 36, Impairment of Assets, because the firm did not evaluate whether the issuer's components and CGUs represented the smallest identifiable group of assets that generated independent cash inflows. (AS 2501.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "5", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not evaluate whether certain events that occurred during the year were identified and evaluated by the issuer as indicators of potential impairment. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "6", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed (and used) by the issuer to estimate the VIU of one CGU because it limited its procedures to comparing the assumption to historical results, and did not evaluate significant differences between the assumption and historical results. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "7", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform sufficient procedures to evaluate the reasonableness of a significant assumption developed (and used) by the issuer to estimate the VIU of another CGU because it did not take into account, beyond inquiry of management, the issuer's ability to carry out its intended courses of action. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Property, Plant, and Equipment", "Firm-Identified Risk Assessment": "Significant Risk", "Finding Count": "8", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The firm's approach for substantively testing the impairment of PP&E was to test the issuer's process. The issuer engaged external specialists to develop certain assumptions that were used by the issuer to estimate the value-in-use (VIU) of cash generating units (CGUs) with impairment indicators. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop their assumptions. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the reasonableness of an assumption developed by the company's specialists and used by the issuer to estimate the VIUs of certain other CGUs, beyond obtaining and reading the reports prepared by the company's specialists. Further, the firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10; AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "11", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nThe firm excluded depreciation expense from the scope of its financial statement and ICFR audits for certain of the issuer's components but did not evaluate whether (1) specific risks of material misstatement existed at these components and (2) the risks of material misstatement the firm identified for the components subject to audit procedures also applied to these components such that, in combination, these risks presented a reasonable possibility of material misstatement. (AS 2101.11 and .12; AS 2201.610)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2101", "Paragraph of the Auditing Standard": "12", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nThe firm excluded depreciation expense from the scope of its financial statement and ICFR audits for certain of the issuer's components but did not evaluate whether (1) specific risks of material misstatement existed at these components and (2) the risks of material misstatement the firm identified for the components subject to audit procedures also applied to these components such that, in combination, these risks presented a reasonable possibility of material misstatement. (AS 2101.11 and .12; AS 2201.610)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "9", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "B10", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nThe firm excluded depreciation expense from the scope of its financial statement and ICFR audits for certain of the issuer's components but did not evaluate whether (1) specific risks of material misstatement existed at these components and (2) the risks of material misstatement the firm identified for the components subject to audit procedures also applied to these components such that, in combination, these risks presented a reasonable possibility of material misstatement. (AS 2101.11 and .12; AS 2201.B10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "10", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a straight-line basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not identify and test any controls over the reasonableness of significant assumptions the issuer used to determine the useful lives of certain PP&E. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "11", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a straight-line basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform any procedures to evaluate the reasonableness of significant assumptions the issuer used to determine the useful lives of certain PP&E. (AS 2501.16)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "12", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not identify and test any controls over the (1) accuracy and completeness of the data produced by the issuer, (2) relevance and reliability of information obtained from external sources, (3) reasonableness of certain assumptions, and (4) appropriateness of the methods, used by the company's specialists to develop their assumptions. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "13", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. 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 - .A10; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Depreciation Expense", "Firm-Identified Risk Assessment": "", "Finding Count": "14", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer depreciated PP&E using either a straight-line method based on the estimated useful lives of the assets or a units of production method using certain assumptions developed by company-employed and externally engaged specialists to estimate the expected use or output of the PP&E. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to develop the assumptions.\nFor depreciation expense computed on a units of production basis at in-scope components, the following deficiency was identified:\n·\nThe firm did not perform procedures to test depreciation expense computed using the units of production method, beyond obtaining and reading the reports prepared by the company's specialists. The firm did not perform procedures to test, or (as discussed above) test any controls over, the accuracy and completeness of the data produced by the issuer that was used to compute this depreciation expense. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "15", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For certain accruals and other liabilities, the following deficiency was identified:\n·\nThe firm did not identify and test any controls over the completeness or valuation of certain accruals and other liabilities. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "16", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "For certain accruals and other liabilities, the following deficiency was identified:\n·\nThe firm did not perform any substantive procedures to test the valuation of certain other liabilities. (AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm selected for testing two controls that consisted of the issuer's (1) review of this other liability and (2) comparison of the recorded liability to the reports prepared by the company's specialists. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm selected for testing two controls that consisted of the issuer's (1) review of this other liability and (2) comparison of the recorded liability to the reports prepared by the company's specialists. The firm did not 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)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "For certain accruals and other liabilities, the following deficiency was identified:\n·\nThe firm did not perform sufficient substantive procedures to test the completeness and valuation of certain accrued liabilities because its procedures were limited to reviewing a sample of vendor invoices paid subsequent to year end. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "17", "Auditing Standard": "AS 2501", "Paragraph of the Auditing Standard": "7", "Description in the Firm's Inspection Report": "For certain accruals and other liabilities, the following deficiency was identified:\n·\nThe firm did not perform sufficient substantive procedures to test the completeness and valuation of certain accrued liabilities because its procedures were limited to reviewing a sample of vendor invoices paid subsequent to year end. (AS 2301.08; AS 2501.07)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "18", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "39", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not identify and test any controls over the (1) data produced by the issuer, (2) relevance and reliability of information obtained from external sources, (3) reasonableness of certain assumptions, used by the company's specialists to prepare their reports that were used to estimate the other liability, and (4) appropriateness of the methods, used by the company's specialists. (AS 2201.39)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A1", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A2", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A3", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A4", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A5", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A6", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A7", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A8", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "A", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Accruals and Other Liabilities", "Firm-Identified Risk Assessment": "", "Finding Count": "19", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "For a certain other liability, the issuer engaged external specialists to prepare reports that were used by the issuer to estimate this liability. The company's specialists used financial and non-financial data produced by the issuer, assumptions developed by the issuer, and information from external sources to prepare their reports. The following deficiency was identified:\n·\nThe firm did not perform any procedures with respect to its use of the work of the company's specialists as audit evidence. (AS 1105.A1 - .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe firm selected for testing certain automated controls over this revenue and deferred revenue that consisted of the configuration of the IT systems to automatically perform certain functions based on pre-established parameters, and the firm used a \"\"test of one\"\" approach to test these controls. The firm's testing of these automated controls using a sample of only one instance of each processing alternative was not sufficient because the firm did not test the configuration or programming of these controls or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.46)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe firm selected for testing certain automated controls over this revenue and deferred revenue that consisted of the configuration of the IT systems to automatically perform certain functions based on pre-established parameters, and the firm used a \"\"test of one\"\" approach to test these controls. The firm's testing of these automated controls using a sample of only one instance of each processing alternative was not sufficient because the firm did not test the configuration or programming of these controls or perform other procedures that would have provided sufficient appropriate audit evidence that these controls were designed and operating effectively. (AS 2201.46)\n" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nAs a result of the deficiencies in the firm's testing of the automated controls described above, the firm's testing of certain IT-dependent manual controls was not sufficient because those manual controls relied on the effectiveness of these automated controls. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nAs a result of the deficiencies in the firm's testing of the automated controls described above, the firm's testing of certain IT-dependent manual controls was not sufficient because those manual controls relied on the effectiveness of these automated controls. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe sample sizes the firm used in certain of its substantive procedures to test revenue and deferred revenue were too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the appropriateness of the method used by the issuer to recognize certain revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "8", "Description in the Firm's Inspection Report": "The issuer used multiple information-technology (IT) systems to initiate, process, and record transactions related to certain revenue and deferred revenue. The following deficiency was identified:\n·\nThe firm did not perform procedures to evaluate the appropriateness of the method used by the issuer to recognize certain revenue. (AS 2301.08)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "42", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence. The following deficiency was identified:\n·\nThe firm selected for testing controls that consisted of management's review of the (1) validity and enforceability of new contractual arrangements with VIEs and their shareholders and (2) legal opinion prepared by the company's specialist, which described uncertainties regarding the interpretation and application of current laws, regulations, and rules related to the structure of the VIEs. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the effect of the uncertainties described in the legal opinion prepared by the company's specialist on the issuer's ability to consolidate the VIEs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "5", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "44", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence. The following deficiency was identified:\n·\nThe firm selected for testing controls that consisted of management's review of the (1) validity and enforceability of new contractual arrangements with VIEs and their shareholders and (2) legal opinion prepared by the company's specialist, which described uncertainties regarding the interpretation and application of current laws, regulations, and rules related to the structure of the VIEs. The firm did not evaluate the specific review procedures that the control owner performed to evaluate the effect of the uncertainties described in the legal opinion prepared by the company's specialist on the issuer's ability to consolidate the VIEs. (AS 2201.42 and .44)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A10", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialist and whether the specialist's findings support or contradict the issuer's rights and obligations related to the consolidation of the VIEs because it did not (1) evaluate the nature of the uncertainties described in the legal opinion prepared by the company's specialist and (2) perform additional procedures to address the risks associated with those uncertainties. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Variable Interest Entities", "Firm-Identified Risk Assessment": "", "Finding Count": "6", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "A9", "Description in the Firm's Inspection Report": "The issuer derives revenue through consolidated VIEs and relies on contractual arrangements with the VIEs and their shareholders to control the business operations of the consolidated VIEs. The issuer engaged an external specialist to provide a legal opinion regarding the issuer's consolidated VIEs, including the validity and enforceability of contractual arrangements with the VIEs and their shareholders, and the firm used the work of the company's specialist as audit evidence. The following deficiency was identified:\n·\nThe firm did not sufficiently evaluate the relevance and reliability of the work performed by the company's specialist and whether the specialist's findings support or contradict the issuer's rights and obligations related to the consolidation of the VIEs because it did not (1) evaluate the nature of the uncertainties described in the legal opinion prepared by the company's specialist and (2) perform additional procedures to address the risks associated with those uncertainties. (AS 1105.A9 and .A10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "B", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Related Party Transactions", "Firm-Identified Risk Assessment": "", "Finding Count": "7", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The firm selected for testing a control that included the issuer's review and approval of the pricing used in related party transactions. The firm did not perform procedures to test, or test any controls over, the completeness of a system-generated report from which it made its selections to test this control. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the following deficiency in the firm's testing of IT general controls (ITGCs), the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the following deficiency in the firm's testing of IT general controls (ITGCs), the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the following deficiency in the firm's testing of IT general controls (ITGCs), the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "1", "Auditing Standard": "AS 2201", "Paragraph of the Auditing Standard": "46", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. As a result of the following deficiency in the firm's testing of IT general controls (ITGCs), the firm's testing of these automated and IT-dependent manual controls was not sufficient. (AS 2201.46)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nThe firm selected for testing various change management controls over certain IT systems that consisted of the documentation, review, testing, and approval of changes prior to their migration into production. The issuer used certain other IT systems in the performance of these change management controls (\"\"change management systems\"\"), and the firm made its selections for testing the change management controls from reports that were generated from the change management systems subsequent to year end. The firm did not perform sufficient procedures to test the completeness of the system-generated reports from which it made its selections for testing because the firm's use of the change management systems as the source of the population of changes relied on the automated functionality of those systems, and the firm did not evaluate whether changes were made to the change management systems during the period from year end to the date of testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nThe firm selected for testing various change management controls over certain IT systems that consisted of the documentation, review, testing, and approval of changes prior to their migration into production. The issuer used certain other IT systems in the performance of these change management controls (\"\"change management systems\"\"), and the firm made its selections for testing the change management controls from reports that were generated from the change management systems subsequent to year end. The firm did not perform sufficient procedures to test the completeness of the system-generated reports from which it made its selections for testing because the firm's use of the change management systems as the source of the population of changes relied on the automated functionality of those systems, and the firm did not evaluate whether changes were made to the change management systems during the period from year end to the date of testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nThe firm selected for testing various change management controls over certain IT systems that consisted of the documentation, review, testing, and approval of changes prior to their migration into production. The issuer used certain other IT systems in the performance of these change management controls (\"\"change management systems\"\"), and the firm made its selections for testing the change management controls from reports that were generated from the change management systems subsequent to year end. The firm did not perform sufficient procedures to test the completeness of the system-generated reports from which it made its selections for testing because the firm's use of the change management systems as the source of the population of changes relied on the automated functionality of those systems, and the firm did not evaluate whether changes were made to the change management systems during the period from year end to the date of testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "2", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nThe firm selected for testing various change management controls over certain IT systems that consisted of the documentation, review, testing, and approval of changes prior to their migration into production. The issuer used certain other IT systems in the performance of these change management controls (\"\"change management systems\"\"), and the firm made its selections for testing the change management controls from reports that were generated from the change management systems subsequent to year end. The firm did not perform sufficient procedures to test the completeness of the system-generated reports from which it made its selections for testing because the firm's use of the change management systems as the source of the population of changes relied on the automated functionality of those systems, and the firm did not evaluate whether changes were made to the change management systems during the period from year end to the date of testing. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe firm used certain system-generated data to substantively test revenue, receivables, deferred revenue, and inventory but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe firm used certain system-generated data to substantively test revenue, receivables, deferred revenue, and inventory but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe firm used certain system-generated data to substantively test revenue, receivables, deferred revenue, and inventory but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "3", "Auditing Standard": "AS 1105", "Paragraph of the Auditing Standard": "10", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe firm used certain system-generated data to substantively test revenue, receivables, deferred revenue, and inventory but did not test, or (as discussed above) sufficiently test controls over, the accuracy and completeness of this data. (AS 1105.10)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "16", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "18", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2301", "Paragraph of the Auditing Standard": "37", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "19", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Revenue", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Deferred Revenue", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Inventory", "Firm-Identified Risk Assessment": "", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-dependent manual controls that used data and reports generated or maintained by certain of these IT systems. \nAs a result of the firm's ITGC testing deficiencies, the firm did not perform sufficient substantive procedures, as follows:\n·\nThe sample size the firm used in certain of its substantive procedures to test revenue was too small to provide sufficient appropriate audit evidence because these procedures were designed based on a level of control reliance that was not supported due to the deficiencies in the firm's control testing discussed above. (AS 2301.16, .18, and .37; AS 2315.19, .23, and .23A)" }, { "Inspection Type": "Triennially Inspected", "Registration ID": "1424", "Firm Names": "PricewaterhouseCoopers Zhong Tian LLP", "Inspection Year": "2023", "Country": "China", "Global Network": "PricewaterhouseCoopers International Limited", "Inspection Report Date": "22-Aug-24", "Inspection Report Section": "Part I.A", "Issuer Reference Key": "C", "Firm played a role but was not the lead auditor": "No", "Audits Affected by the Deficiencies Identified in Part I.A": "Both financial statement and ICFR audits", "Classification of Audits with Part I.A Deficiencies": "Audits with multiple deficiencies", "Audit Area": "Receivables", "Firm-Identified Risk Assessment": "Fraud Risk", "Finding Count": "4", "Auditing Standard": "AS 2315", "Paragraph of the Auditing Standard": "23A", "Description in the Firm's Inspection Report": "The issuer used multiple IT systems to initiate, process, and/or record transactions related to certain revenue, receivables, deferred revenue, and inventory. In its testing of controls over these accounts, the firm tested various automated and IT-depende