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1. PCAOB Proposes Standards for Broker-Dealer Audits and Auditing Supplemental Information   WebExclusive

The PCAOB issued proposed standards for audits of broker-dealer and issuer engagements for public comment Tuesday. The proposals consist of two attestation standards related to the auditor’s examination of compliance reports and review of exemption reports of broker-dealers proposed by the SEC as part of its amendments to the broker-dealer financial reporting rule under Securities Exchange Act of 1934 Rule 17a-5.

2. SEC Proposes Audits of Broker-Dealers' Custody Practices   WebExclusive

The SEC proposed rules that it said would strengthen the annual audits of broker-dealers by requiring an increased focus on their custody activities. Current rules require broker-dealers to protect and account for customer assets. The proposed rule amendments would mandate an audit of those controls. Comments on the proposal are due 60 days after publication in the Federal Register, which is expected shortly.

3. PCAOB OKs Temporary Rule to Govern Broker-Dealer Audits   WebExclusive

Editor's note: The SEC on Wednesday unanimously proposed amendments to the broker-dealer financial reporting rule designed to strengthen audits of broker-dealers and the SEC’s oversight of the way broker-dealers handle their customers’ securities and cash. For details and a video, go to http://www.sec.gov/news/press/2011/2011-128.htm. The PCAOB on Tuesday adopted a temporary rule to establish an interim inspection program for registered public accounting firms’ audits of securities brokers and dealers as permitted by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

4. Recovery Act Funds Spark Auditing Interpretations   WebExclusive

Under the American Recovery and Reinvestment Act of 2009, the federal government is passing down almost $300 billion in additional funds to governments and nonprofit organizations. Much of the funding is subject to audits under Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.

5. Obtaining Quality Employee Benefit Plan Audit Services - The Request for Proposal  

Employee benefit plan sponsors and ­administrators can save time selecting an audit firm and evaluating the quality of its services by writing a thorough Request for Proposal (RFP). Consider these tips offered by the AICPA Employee Benefit Plan Audit Quality Center: P Provide a brief description of the engagement.

6. Securitized Profits  

BY Kenneth F. Fick
EXECUTIVE SUMMARY Securitizations in the mortgage industry are collateralized with home or commercial mortgage loans and are packaged into mortgage-backed securities (MBS) that are sold to institutional investors seeking to realize higher returns on investment-grade debt instruments compared with other securities of similar credit quality. Mortgage banks generate revenue through interest income, the sale of loans and loan servicing income.
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