Financial Reporting and the Law

The SEC recently approved the PCAOB’s proposed standards and amendments to establish auditing and attestation standards applicable to audits of brokers and dealers registered with the SEC. The newly approved standards and amendments, which were proposed pursuant to the PCAOB’s authority under the Dodd-Frank Act, are two attestation standards, an auditing standard, and related amendments.

The attestation standards establish requirements for an auditor’s examination of a broker’s or a dealer’s compliance or exemption report as required by amended Exchange Act Rule 17a-5(d)(1)(i)(B). The auditing standard relates to engagements of an auditor of financial statements to perform audit procedures and report on supplemental information that accompanies audited financial statements. The new standards and related amendments will be effective for fiscal years ending on or after June 1, 2014, which coincides with the effective date for the SEC’s amendments to Rule 17a-5.

For a more detailed discussion of the PCAOB standards and amendments, see our January 2 post.