The PCAOB adopted two attestation standards relating to auditors’ examinations and reviews of broker-dealer compliance and examination reports and adopted an auditing standard for the audits of supplemental information that broker-dealers file with the SEC.
The preparation by broker-dealers of compliance or exception reports are new requirements that were added by the SEC when it adopted amendments to Securities Exchange Act of 1934 Rule 17a-5 on July 30, 2013. The PCAOB’s standards are subject to approval by the SEC. If approved, the effective dates with the Rule 17a-5 effective dates for fiscal years ending on or after June 1, 2014. The PCAOB has seen significant compliance problems under the existing standards through its interim inspection program. The PCAOB plans to adopt conforming rules to reflect the changes relating to broker-dealer audits.
Broker-dealer auditors should be prepared for these changes.