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
This course 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.
Outline
- Securing your auditor and auditor credentials
- Broker-dealer audit inspection overview
- Relevant regulations
- Small Business Correction Act
- Broker-dealer audit issues
- Revenue
- Related-party transactions
- Best practices for audit preparation/effective pre-planning
- Look-back: what worked/did not from past season
- Problem areas to address prior to year end
- Planning work and discussion with auditors
- How to prepare for areas of audit focus:
- Revenue
- Adopting new standards--for example leases
- Financial reporting
- Broker-dealer audit experiences[A1]
- Use of confirmation technology to detect fraud
- Challenges to anticipate/practical solutions
- Contractual support (discuss each type of revenue stream)
- Reconciled schedules
- Use of an experienced FINOP
- Security of support
- Common plan broker-dealer errors
- Potential fixes for errors
- Duties to assess risk of material misstatement due to fraud
Benefits
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
- Establishing a system of quality control to ensure compliance with PCAOB standards
- Addressing auditor independence
Faculty

Batul Abdulali
Senior Audit Manager
Assurance Dimensions
Ms. Abdulali manages audits for public reporting companies in the beverage, IT, telecommunications, oil and gas, and... | Read More
Ms. Abdulali manages audits for public reporting companies in the beverage, IT, telecommunications, oil and gas, and waste management industries. In addition, she has experience in specialized audits such as factoring companies and broker dealers. Ms. Abdulali has also managed private company audits in various industries including pharmaceutical, medical equipment and sustainable energy. She began her auditing career with KPMG, UK and became a Qualified Chartered Accountant and is a member of the Institute of Chartered Accountants in England and Wales in 2010.
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Harley Aronoff, CPA
Co-Founder / Managing Partner
Blue Diamond Audit Consulting
Former PCAOB inspector and broker-dealer industry technical expert, Mr. Aronoff, co-founded the firm after recognizing... | Read More
Former PCAOB inspector and broker-dealer industry technical expert, Mr. Aronoff, co-founded the firm after recognizing the need for auditors of broker-dealers to have a trusted, expert broker-dealer industry consultant with PCAOB experience. During his career, Mr. Aronoff has earned the reputation, both in public accounting and in the broker-dealer industry, as an expert in broker-dealer audits, regulations, and operations. He has the unique background and experience as a CPA who audited broker-dealer financial statements for a globally networked public accounting firm and as a former Series 24 FINRA licensed Principal for a regional broker-dealer.
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Matthew C. (Matt) McNamara, CPA, CISA
Managing Partner
Assurance Dimensions
Mr. McNamara has been practicing as a CPA for 19 years. He began his career at two of the world’s largest... | Read More
Mr. McNamara has been practicing as a CPA for 19 years. He began his career at two of the world’s largest accounting firms, Arthur Andersen and Grant Thornton, before moving over to the industry sector as corporate controller for Anchor Glass and director of internal audit for MarineMax Corp. Mr. McNamara returned to Grant Thornton as a senior manager to oversee a client list of SEC and private company audits in the following industries: technology, manufacturing, construction, transportation and not-for-profit. He led both PCAOB, private equity and venture capital engagements and managed key relationships for the firm’s portfolio companies.
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