BD Firms Must Use PACOB-Registered Audit Firm Starting in 2009
The SEC Order allowing BD firms to use an audit firm not registered with the Public Accounting Oversight Board expired on December 31, 2008. As a result, all non-public BDs must use a PACOB registered audit firm to audit their financial statements starting with 2009. The requirement to use a PACOB firm arose from the Sarbanes-Oxley Act. A list of PACOB-registered firms is available at www.pcaobus.org. If a BD changes accounting firms, Rule 17a-5(f)(4) requires a filing with the SEC.
OUR TAKE: You have this year to either make a switch or get your auditor to register with the PACOB. The overall cost of auditing BD firms will likely increase.