Broker-Dealer Audit Rules Update Webinar

To provide a practical update on recent PCAOB developments, inspection findings, and auditing standards to help participants strengthen audit quality and compliance.

• PCAOB changes and updates
  – Board leadership transition and governance changes
  – Key staff appointments and organizational updates
  – 2026 PCAOB budget and strategic priorities
  – Recent comments from PCAOB and SEC leadership
  – Emerging regulatory focus on technology and AI
• PCAOB inspection results
  – Inspection process overview
  – Inspection selection methodology
  – Inspection activity by firm type and industry
  – Overall inspection results and deficiency trends
  – Common financial statement and ICFR deficiencies
  – Revenue recognition, fraud, and audit committee communication findings
  – Broker-dealer inspection results and common deficiencies
• PCAOB inspection priorities
  – Current inspection focus areas
  – Industry and engagement selection priorities
  – Technology-enabled auditing
  – Quality control and firm culture
  – Critical audit matters and emerging risk areas
• New PCAOB standards and rules
  – AS 1215: Audit Documentation
  – AS 2310: The Confirmation Process
  – AS 1105: Audit Evidence
  – Technology-assisted analysis of information in electronic form
• QC 1000: A Firm's System of Quality Control
• Newly proposed PCAOB standards and rules
  – Proposed amendments to existing auditing standards
  – Standard-setting agenda updates
  – Future quality control and inspection initiatives
  – QC 1000 refinements
  – Broker-dealer inspection program
  – CAM research
  – Technology initiatives 
• Recent regulatory actions and sanctions
  – Enforcement trends
  – Recent disciplinary actions
  – Practical lessons learned from PCAOB enforcement
• Technology and AI considerations
  – AI-enabled audit procedures
  – Technology-assisted audit evidence
  – Regulatory expectations for AI governance
  – SEC/PCAOB focus on AI governance and quality control systems 
  – Implications for audit quality

Zohaib Qamar, Partner, Citrin Cooperman & Company LLP

To equip broker-dealer auditors with up-to-date, firsthand insight from a PCAOB inspection leader on current inspection findings, evolving standards, and practical steps firms can take to strengthen audit quality and prepare for upcoming inspection activity.

DETAILED LEARNING OBJECTIVES

• Describe the purpose and objectives of the PCAOB inspection process

• Identify common audit deficiencies identified during PCAOB inspections

• Distinguish inspection deficiencies from conclusions that financial statements are materially misstated

• Explain how PCAOB inspections promote audit quality and consistent application of auditing standards

• Recognize the importance of professional skepticism and obtaining sufficient appropriate audit evidence

• Identify the scope of the PCAOB's authority over public company and broker-dealer audits

• Explain how inspection observations can be used to improve audit methodologies and future audit performance

• Recognize indicators of recurring inspection deficiencies and identify areas requiring remediation

• Overview of PCAOB publications relevant to broker-dealers
• Results and observations from 2024 inspections, including relevant examples:
  – Audits of broker-dealer financial statements and supplemental information
  – Reviews of broker-dealer exemption reports
  – Examinations of broker-dealer compliance reports
• Updates to ASC 280 segment reporting requirements per ASU 2023-7
• AS 2410: standards for related party transactions
• Status of 2025 inspection activities

Mike Walters, Regional Associate Director, Division of Registration and Inspections, PCAOB