What auditors of brokers and dealers need to know about audit planning

By Ken Tysiac

Auditors of brokers and dealers have a lot to consider as they plan their audit and attestation engagements.

Risk assessment procedures, auditor communication requirements, and revenue recognition are among the many complex areas that auditors need to consider carefully in their planning and throughout the audit.

A Center for Audit Quality (CAQ) alert issued Thursday, Audit Planning Alert for Auditors of Brokers and Dealers, covers these topics in detail as well as:

  • Related-party transactions.
  • Auditing information produced by a service organization.
  • Supplemental information accompanying the financial statements.
  • Examination engagements.
  • Review engagements.
  • Additional considerations such as independence, engagement quality reviews, and financial statement presentation and disclosure.

The alert presents questions for auditors of brokers and dealers to consider in all these areas as they plan their audit and attestation engagements. Although the questions do not represent definitive guidance and are not all-inclusive, they may be useful for auditors of brokers and dealers in their planning.

The CAQ is affiliated with the AICPA.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

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