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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