PCAOB Announces Two Forums on Auditing Smaller Broker-Dealers

The Public Company Accounting Oversight Board today announced the dates for its two 2013 Forums on Auditing Smaller Broker-Dealers and the agenda for the first session.

The forums are designed to share important information about Board activities with PCAOB-registered public accounting firms that audit brokers and dealers. The forums also provide an opportunity for Board Members and PCAOB staff to hear the questions, comments and concerns of auditors working with smaller brokers and dealers.

The first forum this year will be held in Jersey City, N.J., on Thursday, Oct. 31.

"These meetings allow the PCAOB to highlight important program areas and engage in a dialogue with auditors of smaller broker-dealers about current audit issues," said James R. Doty, PCAOB chairman. "It is imperative to have these conversations now as the regulatory landscape for broker-dealers continues to develop."

On Aug. 19, 2013, the PCAOB released its second report on the progress of its interim inspection program for auditors of brokers and dealers, which describes the audit deficiencies identified in a second round of broker-dealer auditor inspections.

"The audit deficiencies and independence findings in the report point out the need for the broker-dealer forums we are announcing today," said Mary Sjoquist, Director of the Office of Outreach and Small Business Liaison, who oversees the Forum on Auditing Smaller Broker-Dealers program.

On July 30, 2013, the Securities and Exchange Commission approved amendments to Exchange Act Rule 17a-5 that affect certain annual reporting, audit, and notification requirements for brokers and dealers.

These amendments include the requirement that the audits of brokers and dealers be conducted in accordance with PCAOB standards for fiscal years ending on or after June 1, 2014.

In addition to these recent amendments, forum discussion topics will include:

• Audit deficiencies and independence findings related to the PCAOB's interim inspection program for audits of brokers and dealers
• Guidance for transition to PCAOB auditing standards applicable to audits of brokers and dealers

The program also will include presentations from the staff of the SEC and the Financial Industry Regulatory Authority (FINRA), as well as a regulatory panel discussion.

Each forum is hosted by a PCAOB Board Member and is open to members of PCAOB-registered firms that audit brokers and dealers. There is no fee charged to participate in these events, but preregistration is required. Attendees also have the opportunity to earn continuing professional education credits.

The 2013 schedule includes two forums:

• Jersey City, N.J., Oct. 31
• Las Vegas, Nev., Nov. 20

More information on the Forums on Auditing Smaller Broker-Dealers is available on the PCAOB website. If you have further registration questions, please contact Margaret Hopkins at [email protected] or (202) 207-9081.