U.S. Audit Watchdog Weighs Future of Broker-Dealer Inspections

The U.S. audit regulator may soon decide the fate of auditors of broker-dealers—who have struggled to comply with its rules—and whether to continue scrutinizing their performance or scuttle a now-routine review.

Duane DesParte, a member of the Public Company Accounting Oversight Board, said Sept. 25 that staff are researching whether the board should establish a permanent inspection regime, and whether it would treat the auditors of all broker-dealers the same or create a tiered inspection system. The board hopes to move quickly, he said.

“It is a live item right now at the PCAOB,” DesParte said ...