Series 24: Annual Audit

Annual Audit

All firms (except for fully disclosed firms that never carry customer accounts) must file a yearly financial report that has been audited by an independent public accountant. The accountant must not have any financial interest in the firm in order to be independent. Additionally, the accountant must be duly registered and in good standing under the laws of his or her principal place of residence.

The annual audit must include a review of the firm’s accounting system, internal accounting controls, and procedures for safeguarding securities. Additionally, the accountant must express an opinion on the financial statements, schedules, and accounting principles and practices followed. The accountant must also give an opinion on whether the accounting principles were applied consistently (only those that might have a material effect on the financial stateme