A member of the US audit board said Tuesday that it would formalize its inspection program for auditors of brokerage firms, replacing its more than decade-old “interim” reviews.
A new program should consider the varying risks and legal requirements of the broker-dealers, Mark Calabria, who serves on the Public Company Accounting Oversight Board, said according to prepared remarks addressing a forum for brokerage auditors.
A draft proposal could be ready for public scrutiny “over the coming year,” Calabria said at the Chicago event.
“When broker-dealer firms are holding investor cash and securities—the stakes for investors are high,” Calabria said. ...