New PCAOB Audit Focus Provides Auditors of Broker-Dealers With Insights on Exemption Report Reviews

Today, the PCAOB released a staff publication, “Broker-Dealer Audit Focus: Review Engagements Regarding Exemption Reports.”

Under federal law, the PCAOB has the responsibility to oversee firms that audit broker-dealers registered with the U.S. Securities and Exchange Commission (SEC).

PCAOB staff continues to identify deficiencies related to the review procedures required by Attestation Standard No. 2, Review Engagements Regarding Exemption Reports of Brokers and Dealers. This standard establishes requirements that apply when an auditor is engaged to perform a review of the statements made by a broker-dealer in an exemption report prepared pursuant to SEC rules.

This edition of Broker-Dealer Audit Focus highlights key reminders for auditors from Attestation Standard No. 2, provides the staff’s perspectives on common deficiencies observed in auditors’ work, and shares good practices that PCAOB staff has observed.

About the Broker-Dealer Audit Focus Series

Broker-Dealer Audit Focus is a new series of PCAOB publications that aims to provide easy-to-digest information to auditors of registered broker-dealers. Each edition of Broker-Dealer Audit Focus reiterates the applicable auditing or attestation standards, rules, and/or staff guidance, as well as offers reminders and good practices tailored to PCAOB-registered auditors of broker-dealers – all with an eye toward protecting investors and improving audit quality.

Auditors and others can find more PCAOB resources and perspectives on our Information for Auditors of Broker-Dealers, Information for Smaller Firms, and Staff Publications pages. Sign up for targeted email updates through our Communications to Auditors and Communications to Small Audit Firm Practitioners mailing lists.