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PCAOB adopts broker-dealer standards

  • PCAOB (US Public Company Accounting Oversight Board) Image

Oct 10, 2013

The PCAOB voted today to adopt two attestation standards on audits of brokers and dealers. The standards will enhance the compliance information provided to the SEC and used in its regulatory oversight of broker-dealers. In addition, the PCAOB adopted an auditing supplemental information standard that accompanies the financial statements.

The two attestation standards provide the following guidance:

  • Attestation Standard No. 1, Examination Engagements Regarding Compliance Reports of Brokers and Dealers, creates requirements consistent with SEC Rule 17a-5 for the auditor's examination of certain statements in broker-dealer compliance reports.
  • Attestation Standard No. 2, Review Engagements Regarding Exemption Reports of Brokers and Dealers, creates requirements consistent with SEC Rule 17a-5 for the auditor's review of the statements in broker-dealer exemption reports.

The auditing supplemental information standard, Auditing Standard No. 17, Auditing Supplemental Information Accompanying Audited Financial Statements, creates auditor guidelines during audit procedures and reporting on supplemental information that accompanies the audited financial statements of broker-dealers and others. Also included are supporting schedules that broker-dealers are required to file with the SEC.

For more information, see Deloitte's October 28, 2013, Accounting Journal Entry: PCAOB adopts broker-dealer attestation standards and an auditing standard related to supplemental information.

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