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Bill Would Ease Small Brokers’ Audit Burden

The News: Two Republican and two Democratic senators have introduced a bill to exempt small brokers from having to use a Public Company Accounting Oversight Board (PCAOB)-registered audit firm to do its audit.
Who It Affects: Privately held, non-custody brokers and dealers.
Why It’s Important: Small brokers are being held to the same auditing standard as large publicly held brokers.
Background: The Dodd-Frank Act requires all investment brokers and dealers, irrespective of size, to hire a Public Company Accounting Oversight Board (PCAOB)-registered audit firm to conduct audits using significantly more complex guidelines designed for larger, public companies. This was a reversal of standards set by the Sarbanes-Oxley Act. A version of the bill made it through committee the last two years, but was not passed by Congress before the end of the year.
What’s Next: Committees have to pick up the bill.
Read More:
Cotton Introduces the Small Business Audit Correction Act

One thought on “Bill Would Ease Small Brokers’ Audit Burden”

  1. It has become apparent that the larger firms have control and influence over the SEC and FINRA – this would help and allow the smaller firms to remain competitive and Agile.

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