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PCAOB Adopts Standards And Amendments For Broker-Dealers

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The Public Company Accounting Oversight Board (PCAOB) has adopted attestation standards pertaining to audits of brokers and dealers, an auditing standard for supplemental information accompanying financial statements audited according to PCAOB standards, and related amendments to other PCAOB standards.
The Public Company Accounting Oversight Board (PCAOB) has adopted attestation standards pertaining to audits of brokers and dealers, an auditing standard for supplemental information accompanying financial statements audited according to PCAOB standards, and related amendments to other PCAOB standards.

The PCAOB intends these standards to enhance the quality of broker-dealer compliance information provided to the Securities and Exchange Commission (SEC) and used in its regulatory oversight, which is important for the protection of customers who entrust their cash and securities to broker-dealers.

The attestation standards adopted by the PCAOB cover the auditor's examination regarding compliance reports and the auditor's review regarding exemption reports of broker-dealers. The PCAOB also adopted a new standard for auditing supplemental information that accompanies the financial statements.

The PCAOB has made available a Fact Sheet: PCAOB Standards for Broker-Dealer Auditors (Fact Sheet) that provides background information on, summarizes the new standards, and discusses next steps for the PCAOB on broker-dealer audits.

Subject to SEC approval, the new standards will become effective for audits of financial statements for fiscal years ending on or after June 1, 2014, to coincide with the effective date for the broker-dealer reporting requirements recently issued in the SEC Rule 17a-5 amendments.

A press release on the PCAOB meeting is available by clicking here.

The PCAOB Fact Sheet is available by clicking here.

The Exposure Draft, Proposed Standards for Attestation Engagements Related to Broker and Dealer Compliance or Exemption Reports Required by the U.S. Securities and Exchange Commission and Related Amendments to PCAOB Standards, is available by clicking here.

 

Readers should not act upon information presented without individual professional consultation.

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