THE MAN HAS SPOKEN. This is the official statement from Barry Melancon in response to the PCAOB's proposed broker-dealer audit standards:
“The AICPA is committed to activities that enhance audit quality and has been a leader assisting practitioners in achieving that goal.
“We have been consistent in our position that brokers and dealers should be subject to SEC regulation and that auditors of those brokers and dealers that carry, clear or have custody of customer funds should be subject to the PCAOB's standards, inspections and enforcement programs.
“The PCAOB's interim inspection program, established to determine the appropriate scope of regulation under the Dodd-Frank Act, will provide insight into which auditors should be subject to the full regulation of the PCAOB.
“We believe it is critical that the PCAOB use risk analysis in determining which audits of broker-dealers should be included in a permanent inspection program.
“We urge the Board to act expeditiously in determining the scope of that program.”