It looks like some annual audits of broker-dealers may become a little more difficult, if auditing firms review a report released today by PCAOB and work to ensure that their audits are problem free. The Public Company Accounting Oversight Board today released a press release and their interim inspection report announcing its findings from examinations of audits of broker-dealers.
This inspection program focused on a small number of auditing firms and broker-dealers and is admittedly a very small sample size. PCAOB identified deficiencies relating to audit procedures related to computation of net capital requirements as well as customer reserve calculations, audits of financial statements, as well as issues with auditor independence. Much more detailed information is contained within the report. If you're involved in financial operations - including having some responsibility for your firm's annual audit - you want to take a look at this.