Financial Institutions Industry Developments: Including Depository and Lending Institutions and Brokers and Dealers in Securities – Audit Risk Alert

Find out about important issues affecting the financial institutions industry, including the depository and lending institutions and brokers and dealers in securities industries, and how current developments affect auditing in this industry. This Audit Risk Alert focuses on emerging practice issues and current economic, accounting, and auditing developments. This alert also provides you with regulatory updates from the Federal Financial Institutions Regulators, SEC, and CFTC among others.

New accounting and auditing guidance that are particularly significant to this alert and covered in just the right amount of detail include:

• FASB ASU No. 2011-02, Receivables (Topic 310):A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring
• Revised HUD requirements for supervised mortgagees, including financial institutions, for financial statement audits in accordance with Government Auditing Standards and audits of compliance with requirements for HUD-assisted program
• Auditing other real estate owned in light of foreclosure processes weaknesses discovered during the reviews of 14 federally regulated mortgage servicers
• PCAOB observations related to audit risk areas affected by the economic crisis

This alert also provides information on emerging issues such as:

• Proposed and final regulatory developments as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act
• Proposed amendments to the SEC’s broker-dealer financial reporting rule included in SEC Rule 17a-5
• PCAOB proposed attestation standards related to compliance examination or review engagements of broker-dealers.

To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This alert helps you identify those factors and how they may be a source of risk. You’ll not only find targeted discussion of new developments and considerations, but also a look at what’s in the pipeline that may affect your engagements.

This Alert is intended to be used in conjunction with the Audit Risk Alert General Accounting and Auditing Developments--2011/12(product no. 0223311), which explains important issues that affect all entities in all industries in the current economic climate. General topics include recently issued ASUs on receivables, fair value, business combinations, troubled debt restructuring and goodwill, and emerging audit risks such as those associated with the billion dollar structured securities industry.

For a topical listing of subject matter by chapter, click on the Table of Contents tab.