Independence Stays on PCAOB's Radar for Broker-Dealer Audits

JUNE 29, 2017   RECENT DEVELOPMENTS

According to a PCAOB staff inspection brief detailing the scope of its ongoing 2017 inspections of auditors of brokers and dealers, independence will remain a focus. This news comes on the heels of the Board's staff inspection brief previewing results of 2016 inspections of broker/dealer audits.  Apparently, the Board continues to find auditors preparing their client's financial statements and underlying books and records in contravention of the SEC's longstanding prohibition on bookkeeping.  

The temporary inspection program for broker and dealer auditors has been in play for quite a while now -- and the issue has been well-publicized via disciplinary actions, speeches and other means.  So I do wonder when we'll cease seeing these types of findings from the Board's Inspectors and enforcement actions.