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Question: Briefly summarize 2 specific deficiency identified by the PCAOB that is of concern to you, and which you feel pertains to work that could

Question: Briefly summarize 2 specific deficiency identified by the PCAOB that is of concern to you, and which you feel pertains to work that could have been encountered by lower level audit staff. (e.g., On Issuer G, the Firm failed to test any controls for certain significant categories of the issuers revenue...) Please be sure to explain your selections and concerns.

First deficiency: Issuer H In this audit, the Firm failed to obtain sufficient appropriate audit evidence to support its audit opinion on the effectiveness of ICFR, as the controls the Firm selected for testing did not sufficiently address the risks related to the accuracy of the recorded revenue amounts. The Firm identified and tested a total of three controls over revenue. One of the controls consisted of the issuer's comparison of the terms in customer purchase orders to the terms for those orders entered into the issuer's accounting system. The other two controls were automated information technology ("IT") controls designed to (1) compare prices to a master price list and suspend the processing of orders with pricing differences over certain thresholds and (2) generate customer invoices and record product sales at the time products were shipped. The Firm failed to identify that the controls it selected and tested were not designed to address, and it did not identify and test any other controls that addressed, the accuracy of (1) the master price list used in the first IT control and (2) the quantities used in the second IT control that were included in the invoices and used to record product sales.

Second deficiency: Issuer K In this audit, the Firm failed to obtain sufficient appropriate audit evidence to support its audit opinion on the effectiveness of ICFR. During the year, the issuer acquired a significant business. The Firm selected for testing two controls over the valuation of the acquired intangible assets. The first control consisted of management's review and approval of the forecasted cash flows that were used in the purchase price allocation, but the Firm's procedures to test this control were not sufficient. Specifically, the Firm's procedures were limited to inquiring of management and attending a meeting, without evaluating the appropriateness of the specific steps that the control owners took to review the forecasts, including the criteria used to identify items for follow up and the process for resolving those items. The second control consisted of management's review of the accounting for the acquisition, but this control depended, in part, on the effectiveness of the first control, which was not sufficiently tested.

Please help summarize and why are they concerning

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