Broker-Dealer Audits: Overcoming Costly Deficiencies in PCAOB Examinations and Avoiding Sanctions

Addressing Auditor Independence, Related-Party Transactions, SEC Net-Capital Rules and More

Recording of a 110-minute CPE webinar with Q&A

Conducted on Thursday, January 25, 2018

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide audit professionals and advisers with practical guidance for conducting broker-dealer audits, offering tools to avoid the most common and costly risk areas in broker-dealer audits as identified in PCAOB annual inspections. The panel will offer their experiences and practical approaches to prevent or resolve audit deficiencies.


On Aug. 30, 2017, the PCAOB issued its 2017 Inspection Brief identifying its focus and objectives for inspections. As in its prior year briefs, PCAOB noted material deficiencies that occur year after year in broker-dealer audits. In particular, the Board emphasized audit deficiencies both in assessing and responding to risks of material misstatement and in auditing internal control of financial reporting as key areas of focus.

PCAOB inspections will continue scrutiny of auditor independence; financial statement areas with recurring deficiencies; audit procedures for related party transactions; attestation engagement procedures; engagement quality review; and compliance with the newly updated Auditing Standard 2410 (AS 18).

Broker-dealer auditors are responsible for reporting to the SEC on material inadequacies and ensuring compliance with net capital and customer funds segregation rules. The SEC requires broker-dealer auditors to register with the PCAOB and be inspected regularly. In addition, the SEC is enforcing amendments by PCAOB on its Rule 4003 audit inspection rules.

Listen as our panel of broker-dealer audit experts offers practical guidance on what PCAOB inspectors are looking for and the underlying reasons certain areas are more heavily scrutinized. The program will discuss auditors’ duties to maintain independence, assess risks of material misstatements due to fraud, and the use of confirmation technology to verify statements and arrangements.



  1. Broker-dealer audit inspection overview
    1. Relevant regulations
    2. Broker-dealer audit issues
  2. Challenges to anticipate
    1. Common plan broker-dealer errors
    2. Potential fixes for errors
    3. Duties to assess risk of material misstatement due to fraud
  3. Best practices for audit preparation
    1. Broker-dealer audit experiences
    2. Use of confirmation technology to detect fraud


The panel will review these and other key issues:

  • Understanding the areas of highest risk in broker-dealer audits
  • Identifying and avoiding the most common mistakes in broker-dealer audits
  • Pinpointing expedient solutions to the most common mistakes after the fact


Breard, Kevin
Kevin G. Breard

Managing Partner
Breard & Associates

Mr. Breard has nearly 30 years of accounting experience, including 26 years of public accounting and several years as...  |  Read More

Baran, Payton
Payton Baran

Mr. Baran practiced as an auditor for over six years in the Metro DC region. In the course of this audit experience, he...  |  Read More

Cornish, Robert
Robert V. Cornish, Jr.

Of Counsel
Wilson Elser Moskowitz Edelman & Dicker

Mr. Cornish focuses his practice on litigation, arbitration, regulatory and compliance matters for broker-dealers,...  |  Read More

Other Formats
— Anytime, Anywhere

CPE On-Demand

See NASBA details.

CPE Available



CPE Not Available