Inspectors say some BD auditors still need to get independence right

August 22, 2016RECENT DEVELOPMENTS

The PCAOB released a new report on 2015 inspections of broker-dealer audits showing that deficiencies continue to occur at a high level. While results improved slightly from 2014, there is still much work to be done, including in independence compliance.

Hard to believe that some broker-dealer auditors think they can keep these clients' books and still audit the financial statements.  That SEC independence rule (i.e. strict prohibition on bookkeeping) has been around for many, many years.   These independence violations (the PCAOB has been aggressively pursuing and sanctioning firms that flout the rule) came to light when the PCAOB expanded its jurisdiction to include broker-dealer audits as a result of the Dodd-Frank law.  

Click here to read a brief article and access the PCAOB's report.