Our audit looked at whether or not the companies were tracking their approval conditions and whether or not they were following up on company deficiencies, and we found that in 50% of the cases they were and in 50% of the cases they were not. Regarding the cases where they were not, it was everything from the company corrective action not being provided, to the board not following up to tell the company that it was doing the right thing, to no final conclusion by the board as to whether or not they had met the deficiency, to missing documents. It definitely is a concern when the regulator is not able to satisfy the auditor that they are properly tracking, and it potentially does increase the risk.
On February 23rd, 2016. See this statement in context.