So KPMG was obligated to do an audit of ICFR per new rules by regulator. It must have found deficiencies and could not sign off on the financial statements. Reliq must be correcting deficiencies so it can get a clean audit report from KPMG.
In June 2023 The Public Company Accounting Oversight Board (“PCAOB”) proposed amendments to its auditing standards related to an auditor’s consideration of a company’s noncompliance with laws and regulations in the performance of an audit.
In May 2024 AS 1001, AS 1005, AS 1010, and AS 1015 were replaced with one standard, AS 1000, that describes the general principles and responsibilities of an auditor in conducting an audit in accordance with the standards of the PCAOB. Briefly, the new standard:
Includes introductory language that reaffirms the auditor’s fundamental obligation to protect investors through the preparation and issuance of informative, accurate, and independent auditor’s reports;
Includes objectives for the auditor to conduct and communicate the results of both an audit of a company’s financial statements and an audit of a company’s ICFR and satisfy and fulfill other general principles and responsibilities described in this standard;
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