Inspection of UHY LLP Public Company Accounting Oversight Board

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PCAOB Release No. 104-2009-162Inspection of UHY LLPOctober 1, 2009Page 2PART IINSPECTION PROCEDURES AND CERTAIN OBSERVATIONSMembers of the Board's inspection staff ("the inspection team") conductedprimary procedures for the inspection from August 6, 2007 to August 22, 2007. Theseprocedures were tailored to the nature of the Firm, certain aspects of which theinspection team understood at the outset of the inspection to be as follows:Number of offices 20 3/Ownership structureLimited liability partnership;alternative practice structure affiliationwith UHY Advisors, Inc.Number of partners 114Number of professional staff 4/ 1,132Number of issuer audit clients 5/ 653/The Firm's offices are located in Los Angeles and San Jose, California;Hartford, New Haven, and Stamford, Connecticut; Atlanta, Georgia; Boston andWestborough, Massachusetts; Southfield and Sterling Heights, Michigan; St. Louis,Missouri; Albany, Glens Falls, New York, Poughkeepsie, and Rye Brook, New York;Dallas, Houston, and The Woodlands, Texas; and Washington, D.C.4/"Professional staff" includes all personnel of the Firm, except partners orshareholders and administrative support personnel. The number of partners andprofessional staff is provided here as an indication of the size of the Firm, and does notnecessarily represent the number of the Firm's professionals who participate in audits ofissuers or are "associated persons" (as defined in the Act) of the Firm.5/The number of issuer audit clients shown here is based on the Firm's selfreportingand the inspection team's review of certain information for inspection planningpurposes. It does not reflect any Board determination concerning which, or how many,of the Firm's audit clients are "issuers" as defined in the Act. In some circumstances, aBoard inspection may include a review of a firm's audit of financial statements of an
PCAOB Release No. 104-2009-162Inspection of UHY LLPOctober 1, 2009Page 3Board inspections are designed to identify and address weaknesses anddeficiencies related to how a firm conducts audits. 6/ To achieve that goal, Boardinspections include reviews of certain aspects of selected audits performed by the firmand reviews of other matters related to the firm's quality control system.In the course of reviewing aspects of selected audits, an inspection may identifyways in which a particular audit is deficient, including failures by the firm to identify, or toaddress appropriately, respects in which an issuer's financial statements do not presentfairly the financial position, results of operations, or cash flows of the issuer inconformity with GAAP. 7/ It is not the purpose of an inspection, however, to review all ofa firm's audits or to identify every respect in which a reviewed audit is deficient.Accordingly, a Board inspection report should not be understood to provide anyassurance that the firm's audits, or its issuer clients' financial statements, are free of anydeficiencies not specifically described in an inspection report.A. Review of Audit EngagementsThe inspection procedures included a review of aspects of the Firm's auditing offinancial statements of 10 issuers. The scope of this review was determined accordingto the Board's criteria, and the Firm was not allowed an opportunity to limit or influencethe scope. This review did not identify any audit performance issues that, in theinspection team's view, resulted in the Firm failing to obtain sufficient competentevidential matter to support its opinion on the issuer's financial statements.issuer that ceased to be an audit client before the inspection, and any such formerclients are not included in the number shown here.6/This focus necessarily carries through to reports on inspections and,accordingly, Board inspection reports are not intended to serve as balanced reportcards or overall rating tools.7/When it comes to the Board's attention that an issuer's financialstatements appear not to present fairly, in a material respect, the financial position,results of operations, or cash flows of the issuer in conformity with GAAP, the Board'spractice is to report that information to the SEC, which has jurisdiction to determineproper accounting in issuers' financial statements.
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Inspection of UHY LLP Public Company Accounting Oversight Board

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