PCAOB staff provides guidance for broker-dealer auditors

BY KEN TYSIAC

The PCAOB staff on Thursday issued new guidance for SEC-registered auditors of brokers and dealers as they make the transition to PCAOB standards from the generally accepted auditing standards (GAAS) that previously governed such audits.

The staff guidance highlights relevant requirements for audits and attestation engagements. It also provides direction on applying PCAOB standards to these engagements, particularly for audits of smaller broker-dealers with operations that are not complex.

“This guidance is tailored to help auditors of smaller broker-dealers develop a cost-effective, scaled approach to their audits,” PCAOB Chairman James Doty said in a news release.

The PCAOB was given oversight authority for audits of brokers and dealers registered with the SEC by the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203. Rule amendments approved by the SEC in July 2013 required that audits of broker-dealers be conducted in accordance with PCAOB standards.

A new auditing standard and two attestation standards applying to broker-dealer audits were adopted by the PCAOB in October 2013 and approved by the SEC in February 2014.

The new rules take effect for fiscal years ending on or after June 1, 2014.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA editorial director.

CHECKLIST

Boost your LinkedIn profile

LinkedIn is No. 1 when it comes to business-related social media. Be prepared when an unexpected career opportunity arises by following these tips for keeping your LinkedIn page current.

PRACTICE MANAGEMENT

Millennial women: How to woo a new generation of employees

Ambitious, educated, and tech-savvy, Millennial women make ideal employees. Win them over with flexibility and clear paths to advancement.

PROFESSIONAL ISSUES

Belicia Cespedes: A CPA at 17

Through hard work and determination, Belicia Cespedes earned the credential before she was even eligible to vote.