The Objectives of a Broker Dealer Audit

The requirements for broker dealer audits exist to protect investors. Once a year, a firm registered with the PCAOB must audit their broker dealers. Broker dealers are subject to a wide range of regulations and the auditing process ensures that an entity is compliant with all applicable laws.

Independent Auditor Requirements

An independent accounting firm must perform broker dealer audits. The auditors may not perform bookkeeping or other services relating to the financial statements or audit records of the client. Independent auditors are required to comply with all applicable auditing and related professional practice standards.

Finding the Right Auditing Firm

Registration with the PCAOB means that a firm meets the minimum requirement for conducting a broker dealer audit. To ensure a successful audit, choose an accounting firm that has extensive experience navigating the complex world of the securities industry and keeps their finger on the pulse of ever-changing regulations. Audits are, by their very nature, a time-consuming processes, however, they can be conducted with minimal disruption to business operations. The right firm will thoroughly examine your financial statements, consider your corporate goals and provide tools to ensure compliance, without negatively impacting your day-to-day responsibilities.

Addressing Concerns

If any concerns are raised during the course of a broker dealer audit, an independent auditor will make recommendations for change. These recommendations should be considered carefully and a plan of action developed to ensure compliance and fulfillment of audit objectives.

Preparing for a Broker Dealer Audit

In preparation for a broker dealer audit, a company should organize materials that will be used during the process, ahead of time. Answers to anticipated questions from the auditing firm should be developed, as well as a list of questions for the auditors. If your organization is required to submit to a broker dealer audit, finding the appropriate firm is key to success. Our team has over 25 years of hands-on experience auditing an array of broker dealer financial statements and helping organizations meet their audit objectives. Ernst Wintter & Associates LLP is registered with the PCAOB and we understand the implications of the expanded regulations on broker dealer audits. Contact us by phone at (925) 933-2626 or email us at info@ewallp.com.