Thomson Reuters Reports on Broker-Dealer Auditing Changes

New York (June 26, 2014)

By Michael Cohn

Thomson Reuters has released a special report examining the Public Company Accounting Oversight Board’s new standards affecting broker-dealer audits.

The report, Cause and Effect of the Changing Broker-Dealer Audit Landscape, points out that auditors of broker-dealers will need to revise their audit procedures because they are now subject to the PCAOB’s stricter new standards for risk assessment, audit committee communication, engagement quality review and engagement completion documentation. The report is available for download at no cost.

In addition, the second edition of PPC’s Practice Aids for Audits of Broker-Dealers has been substantially revised to reflect these new requirements. The practice aids are used in performing effective and efficient audits of non-public, non-carrying broker-dealers in accordance with PCAOB standards. They contain audit programs, checklists, confirmation and correspondence letters, and report illustrations developed by CPAs with extensive experience performing broker-dealer audits.

“The SEC and PCAOB have taken actions that drastically affect both broker-dealer reporting and how audits will be conducted,” said Cheryl Hartfield, an executive editor in the Tax & Accounting business of Thomson Reuters and author of the special report. “Because of this, broker-dealer auditors who don’t already audit issuers have their work cut out for them. Having practice aids tailored specifically for performing broker-dealer audits in accordance with PCAOB standards will be critical to ensuring compliance with the complex auditing and reporting requirements.”


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