PCAOB Releases Spotlight Related to Broker-Dealer Interim Inspection Program

The PCAOB has released a spotlight publication that provides insight into its interim inspection program for audits of broker-dealers. In the publication, the PCAOB observes that deficiencies related to broker-dealer engagements continue to be “unacceptably high.” According to the PCAOB, general aspects of broker-dealer audits that could be improved include, but are not limited to, (1) understanding of the broker-dealer industry, (2) professional skepticism, (3) risk assessment and consideration of internal controls, (4) experience with PCAOB standards, (5) engagement quality reviews, and (6) placing less reliance on standardized audit programs.

For more information, see the “Information for Auditors of Broker-Dealers” page on the PCAOB’s Web site.