PCAOB to consider adopting broker-dealer audit standards

BY KEN TYSIAC

The PCAOB will meet at 9:30 a.m. Thursday to consider adopting attestation standards for auditors of brokers and dealers.

A new standard on auditing supplemental information that accompanies financial statements audited in accordance with PCAOB standards also will be considered.

If approved, the new standards for auditors of brokers and dealers will replace the generally accepted auditing standards (GAAS) that currently govern such services. An SEC rule amendment in July required that the following services be performed by PCAOB-registered independent public accountants in accordance with PCAOB standards rather than GAAS:

  • Audits of broker and dealer financial statements and supplemental information.
  • Examinations of broker and dealer compliance reports, which are filed with the SEC when broker-dealers have custody of customers’ assets to aid in compliance with customer protection safeguards.
  • Reviews of broker and dealer exemption reports, which are filed with the SEC when broker-dealers do not have custody of customer assets.


The PCAOB initially proposed the attestation standards—and the standard on auditing supplemental information—in July 2011.

Thursday’s meeting will be available via webcast at the PCAOB site.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

QUIZ

News quiz: Good news on pay and benefits for accountants

CPAs can find much to like in recent reports, including news that their expertise and skills are in such demand that pay is expected to rise and that their employers value professional certifications.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.