This site uses cookies for analytics, personalized content and ads. By continuing to browse this site, you agree to this use of cookies in accordance with our Cookie Policy.

CAQ and AICPA Issue Member Alert Highlighting Regulatory Changes Applicable to Audits and Attestation Reports of Brokers and Dealers and Futures Commission Merchants

Monday, May 12, 2014

Changes to Take Effect June 1st

Washington, DC (May 12, 2014) – The Center for Audit Quality (CAQ) and the American Institute of CPAs (AICPA) have issued a member alert outlining regulatory changes that are applicable to audits and attestation engagements of brokers and dealers and futures commission merchants, including those entities that are dually-registered.

The alert is intended to highlight for audit firms certain auditing considerations in response to regulatory changes set forth by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as related guidance and standards issued by the Public Company Accounting Oversight Board (PCAOB). 

The alert addresses: SEC Amendments to Rule 17a-5 and PCAOB Attestation Standards No. 1 and No. 2; PCAOB Auditing Standard No. 17; CFTC Customer Protection Rules for Futures Commission Merchants; and CFTC-Registered Introducing Brokers. The alert also highlights related resources and programs including: the PCAOB’s Inspection Program and Forums on Auditing Smaller Broker-Dealers; AICPA’s Peer Review Program; and the AICPA’s Stockbrokerage and Investment Banking Expert Panel, which addresses regulatory matters from the broker and dealer industry perspective.

“Several significant regulatory changes will soon go into effect that are critical to the auditor, and this document is an example of the profession looking forward in preparing for such changes,” said CAQ Executive Director Cindy Fornelli. 

AICPA President and CEO Barry C. Melancon, CPA, CGMA, said, “The AICPA is committed to activities that enhance audit quality and has been a leader assisting practitioners in achieving that goal. This member alert, part of a profession-wide effort to identify ways to boost investor confidence in the integrity of audited financial statements, will help auditors of brokers and dealers and futures commission merchants navigate recent regulatory changes.” 

The new amendments represent significant areas of change as they relate to the annual reporting requirements of broker-dealers and futures commission merchants. The CAQ and AICPA encourage audit firms to discuss the potential ramifications of these amendments with their broker and dealer and futures commission merchant clients as soon as practical, and assess the changes that are applicable based on the operations of the entity being audited and the regulatory agencies with which the entity is registered. 

The new rules addressed in the alert are generally effective for audits and attestation engagements of broker-dealers and futures commission merchants with fiscal years ending on or after June 1, 2014. Other changes in the rules have effective dates prior or subsequent to June 1, 2014; however this alert is intended to address the major changes effective on June 1, 2014. 


 About the CAQ

The Center for Audit Quality (CAQ) is an autonomous, nonpartisan public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit

Contact: Erica Hurtt, CAQ

About the AICPA

The American Institute of CPAs (AICPA) is the world’s largest member association representing the accounting profession, with more than 394,000 members in 128 countries and a 125-year heritage of serving the public interest. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. 

The AICPA sets ethical standards for the profession and U.S. auditing standards for audits of private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination and offers specialty credentials for CPAs who concentrate on personal financial planning; fraud and forensics; business valuation; and information technology. Through a joint venture with the Chartered Institute of Management Accountants (CIMA), it has established the Chartered Global Management Accountant (CGMA) designation to elevate management accounting globally.

The AICPA maintains offices in New York; Washington, DC; Durham, NC; and Ewing, NJ. Media representatives are invited to visit the AICPA Press Center at

Contact: Jay Hyde, AICPA

# # #