What's Happening?
The Public Company Accounting Oversight Board (PCAOB) has released a new staff publication aimed at auditors of broker-dealers performing review engagements involving exemption reports. This guidance addresses deficiencies observed in review procedures required by Attestation Standard No. 2, which pertains to exemption reports of brokers and dealers. The standard, established in 2013, mandates auditors to coordinate review engagements with financial statement audits and supplemental information audits, ensuring moderate assurance through professional inquiries and procedures.
Why It's Important?
The PCAOB's guidance is crucial for maintaining the integrity of financial reporting within the broker-dealer sector. By addressing deficiencies in review procedures, the PCAOB aims to enhance the reliability of exemption reports, which are vital for regulatory compliance and investor confidence. This move underscores the importance of rigorous auditing standards in safeguarding the financial markets and protecting stakeholders from potential misstatements or fraudulent activities. The guidance also reflects the PCAOB's commitment to upholding high auditing standards in line with the Dodd-Frank Act's expanded regulatory authority.
