Upcoming PCAOB Forums on Auditing Smaller Broker-Dealers

The PCAOB recently announced its schedule of Forums on Auditing Smaller Broker-Dealers for 2012. They are as follows:
  • Jersey City, N.J., Oct. 25
  • San Diego, Calif., Nov. 8

On June 14, 2011, the PCAOB adopted an interim rule to create a temporary inspection program for auditors of broker-dealers which includes all auditors of all broker-dealers in its pilot program. PCAOB members have noted that the final inspection program – expected in 2013 - may be more targeted, depending on the findings of the interim program. The PCAOB has indicated that feedback from auditors working with smaller brokers and dealers will be considered as the Board continues its rulemaking for a permanent program. These specific PCAOB forums for auditors of smaller broker-dealers serve as a venue by which this feedback may be considered.

On August 20, 2012, PCAOB issued its first progress report on interim inspections of broker-dealer audits.

The AICPA has consistently supported PCAOB registration and inspection of all auditors of public broker-dealers, as well as non-public broker-dealers that perform clearing or custodial functions. The AICPA does not believe, however, that PCAOB registration and inspection should be required of auditors of broker-dealers who do not have access to customer funds (i.e., introducing broker-dealers) and thus pose minimal risk to the markets and investors.

The AICPA intends to communicate its position through the views of its members who are being required to register with and become subject to inspection by the PCAOB solely as a result of the Interim Rule. I f your firm is directly impacted by the interim inspection rule and you have an interest in attending one of these upcoming Forums, please contact AICPA Senior Technical Manager Irina Portnoy at iportnoy@aicpa.org or 212-596-6058 for more details.