Brokers and Dealers in Securities - AICPA Audit and Accounting Guide

Ensure you have the most current authoritative guidance when auditing in the broker-dealer industry.

The AICPA Brokers and dealers in Securities Audit & Accounting Guides is developed by leading experts from industry and public practice.  It summarizes new standards, guidance, and practices and provides guidance and discussions specific to current industry developments and trends. The Brokers and Dealers in Securities Audit and Accounting Guide provides both auditors and broker-dealers with guidance relevant to the industry.

This AICPA Audit and Accounting Guide has been fully conformed to reflect the new standards resulting from the Clarity Project. Fully incorporating the clarified auditing standards into this year’s edition of the guide enables auditors to further their understanding of these recently issued auditing standards, as well as begin updating their audit methodologies, resources, and tools prior to the clarified auditing standards’ effective date. The clarified auditing standards are effective for audits of financial statements for periods ending on or after December 15, 2012 (calendar year 2012 audits).

This guide includes relevant guidance contained in applicable standards and other technical sources. Along with an in-depth discussion of the securities industry, information related to regulatory requirements and relevant audit and accounting guidance will assist auditors when performing an audit of a broker-dealer. In addition, broker-dealers will find the information helpful when assessing their operations and internal controls for regulatory considerations.

The broker-dealer industry is undergoing significant change. This guide offers clear and practical guidance on recent developments. SEC regulatory requirements and the related reporting is discussed along with relevant accounting and audit topics of particular importance to audits of broker-dealers. All content is reviewed by industry experts and the appropriate AICPA senior committee(s).

Updates significant to this edition include technical guidance and information contained in:

• FASB ASU 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS
• SEC regulations issued since the last edition including, Risk Management Controls for Brokers or Dealers with Market Access (Release No. 34-63241) and Large Trader Reporting (Release 34-64976)
• PCAOB inspection program report

Note: While auditors should continue to use the previous edition of this guide (2011 edition) until the clarified auditing standards become effective, now is the time to prepare for the clarified standards.