Major Changes for Broker/Dealer Audits

Preparing for PCAOB Inspections, More Rigorous Auditing Standards, and Additional Reporting Requirements

Chuck Fong, CPA, and Rich Fuchs, CPA, and David Grumer, CPA, and Mark Levy, CPA, and Charles Pagano, CPA, and Gary Purwin, CPA

With the SEC's approval of the final Rule 34-70073, auditing a broker/dealer under the PCAOB's auditing standards will certainly be very different. Auditing under the new standards will be effective for fiscal years ending on or after June 1, 2014, but broker/dealers and auditors will benefit by planning now. As noted in SEC Release 34-70073, “the change from GAAS to PCAOB auditing standards will facilitate the Commission's regulatory oversight because the Commission has direct oversight over the PCAOB. … The Commission also has greater confidence in the quality of audits conducted by an independent accountant registered with, and subject to regular inspection by, the PCAOB.”