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SEC Approves Amendments to PCAOB Rules

With most taking effect June 1st, amendments to the Public Company Accounting Oversight Board’s rules (“PCAOB”; “the Board”) conforming to the Dodd-Frank Act have been approved by the U.S. Securities and Exchange Commission (“SEC”). Adopted by the PCAOB, the rules reference audits, and auditors of brokers and dealers in the Board’s provisions. Further, the rules make certain that the PCAOB can carry out its oversight power, which was established under the Dodd-Frank Act regarding audits, and auditors of brokers and dealers registered with the SEC.

The amendments include provisions such as:

  • Adding references to audits and auditors of broker-dealers in applicable Board rules;
  • Requiring enclosure of broker-dealer audit client information on PCAOB Forms 1, 1-WD, 2, 3 and 4 (Forms 1, 1-WD, 3, and 4 take effect July 1st, while Form 2 is effective April 1, 2015);
  • Requiring registered firms that audit broker-dealers to act in accordance with specific professional practice standards;
  • Updating various PCAOB rules and forms based on the Board’s experience imposing rules; and
  • Ensuring updates to the PCAOB ethics and independence requirements.

To view the press release regarding the amendments, click here.

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