PCAOB Releases Report on Interim Inspection Program Related to Audits of Broker-Dealers

July 25, 2024

The PCAOB has released its annual report on its interim inspection program related to audits of broker-dealers. Key takeaways from the report include the following:

In 2023, the number of firms inspected increased from 50 to 60 compared with 2022. The number of broker-dealer audits reviewed also went up, from 90 to 103.
Significant rates of deficiencies were observed in several engagement areas, including examinations, reviews, and audits.
When evaluating audit engagements for noncompliance with PCAOB standards, the Board uncovered the largest number of deficiencies in “audit documentation; auditor communications; auditors’ reports on the financial statements and supplemental information; and auditor independence.”