United States

PCAOB Issues Report on Interim Inspection Program for Audits of SEC-Registered Brokers and Dealers

Aug 29, 2016
From the Financial Reporting View

On August 18, the PCAOB issued its fifth annual progress report on its interim inspection program for audits of SEC-registered brokers and dealers. The report addresses inspections conducted in 2015 of audits of broker-dealers with fiscal years ended on or before June 30, 2015, and covered portions of 115 audits conducted by 75 audit firms. The report describes audit deficiencies and independence findings (collectively referred to as observations), which were identified in 77% of those audits, including observations related to the SEC's customer protection rules, revenue recognition, fair value accounting estimates, examination of compliance and exemption reports, engagement quality reviews, and compliance with independence requirements.

Read PCAOB Release No. 2016-004