PCAOB Adopts Final Standards for Audits Of Broker-Dealers to Coordinate With SEC

The Public Company Accounting Oversight Board unanimously finalized two standards for audits of broker-dealers that aim to protect customer funds from fraud or misappropriation.

Specifically, the standards require auditors to follow procedures to reach an independent conclusion as to whether the broker-dealer has a prudent level of net capital and customer reserves.

The PCAOB also adopted an auditing standard applicable when auditors are engaged to perform audit procedures and report on supplemental information that broker-dealers and others file with the Securities and Exchange Commission.

Examination Standard.

The first adopted standard, Attestation Standard No. 1—the Examination Standard—requires auditors to provide reasonable ...