As you may know, the Public Company Accounting Oversight Board (“PCAOB”) has authority over the financial statement audits of public companies and broker-dealers. CPA firms performing audits of public companies and/or broker-dealers are required to be registered with and subject to inspection by the PCAOB.
In addition, registered investment advisors (“RIA”) with custody (or deemed custody) are subject to surprise examinations by an independent CPA firm. However, there is an exception to the surprise exam requirement if the RIA is audited under generally accepted accounting principles (“GAAP”) by a CPA firm that is subject to PCAOB registration and inspection. Many RIA’s prefer to use this exception rather than being subjected to the additional surprise examination step, and the additional time and expense associated with it.
We are very pleased to announce that, as a result of our growing broker-dealer audit practice, we are now not only PCAOB-registered, but also subject to inspection. Our RIA clients now have the option to obtain audited GAAP financial statements to meet the exception to the surprise examination requirement.
Please contact us if you have any questions or would like any assistance.