Series 28: Independent Public Accountant’s Annual Audit

Independent Public Accountant’s Annual Audit

As mentioned, a firm’s independent public accountant, in addition to auditing the annual financial statement, must prepare an annual audit based on an examination of the broker-dealer’s compliance report or exemption report. The audit must be filed within 60 days of the end of the fiscal year, must be prepared on an accrual basis, and must include a review of the firm’s:

• • Accounting system
• • Accounting controls
• • Procedures for safeguarding securities

In addition, the accountant’s report must:

• • Be dated
• • Be manually signed
• • Include the city and state where it was issued
• • Identify the relevant financial statements and schedules
• • Indicate whether the audit was made in accordance with PCAOB standards
• • Indicate whether the accountant followed procedures for safeguarding securities
• • Explain the reason for any omission of procedures

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