In Its 2004 Through 2006 Inspections, Which of the Following

In its 2004 through 2006 inspections, which of the following was not a deficiency the PCAOB noted related to inadequate testing of stockholders' equity transactions?

A) The auditors failed to properly address and evaluate the substance, business purpose, or significant terms of the equity arrangements.
B) The auditors failed to consider the accounting principles potentially applicable to the equity transactions.
C) The auditors failed to evaluate whether the audit clients had appropriately determined the fair values assigned to equity-based transactions and to test the reasonableness of such fair values.
D) The auditors failed to disclose each class of stock issued by the clients.