AN ANALYSIS OF THE PCAOB’S OVERSIGHT AND ITS INSPECTION PROGRAM OVER THE AUDITORS AND AUDIT FIRMS OF BROKERS-AND-DEALERS: (2011-2017)

Abstract

The Dodd-Frank Act (2010) was signed into law on July 21, 2010. The Act extended the role and the PCAOB’s oversight of auditors and audit firms of brokers and dealers. The purpose of this research is to analyze the PCAOB’s oversight and its inspection program over the auditors and audit firms of brokers and dealers. Specifically, the PCAOB’s temporary inspection program of audit firms of brokers and dealers established in 2011 is discussed. An analysis of the inspections, audit deficiencies, and independence findings from 2011 through 2017 is provided and illustrations of the PCAOB’s sanctions and other disciplinary actions taken against audit firms and auditors of brokers-dealers is provided.