Board Approves Dodd-Frank Conforming Amendments for Broker-Dealer Audits and Certain Other Updates and Clarifications
The Public Company Accounting Oversight Board today approved amendments, as well as certain updates and clarifications, to tailor certain of its rules to the audits and auditors of brokers and dealers registered with the Securities and Exchange Commission, as authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"Today's vote to conform the PCAOB's rules to Dodd-Frank's expansion of the Board's authority represents another step in the Board's implementation of our responsibility to oversee registered firms that audit brokers and dealers," said PCAOB Chairman James R. Doty.
The amendments insert references to audits and auditors of broker-dealers in relevant Board rules, and call for broker-dealer audit client information on the Board's registration, withdrawal, and reporting forms (PCAOB Forms 1, 1-WD, 2, 3, and 4).
The amendments also require that registered firms that audit broker-dealers comply with certain of the Board's professional practice standards; update a number of Board rules and forms based on the Board's experience administering and enforcing PCAOB rules; and make certain updates to the Board's ethics and independence requirements.
The Dodd-Frank Act amended the Sarbanes-Oxley Act to, among other things, give the PCAOB oversight authority for the audits of brokers-dealers registered with the SEC. The Board initially proposed the conforming amendments in February 2012.
If approved by the SEC, the amendments to the PCAOB's rules, Ethics Code, and membership requirements of the American Institute of Certified Public Accountants SEC Practice Section (AICPA SECPS) will take effect on June 1, 2014.
The amendments to Forms 1, 1-WD, 3, and 4 will take effect on July 1, 2014. The amendments to Form 2 will take effect April 1, 2015.
The final amendments and Board statements from the open meeting will be available on the PCAOB website under Rulemaking Docket No. 039. An archive of the webcast and a podcast of the Board meeting also will be available later on the PCAOB website.