backOn June 11, 2026, the PCAOB released its “Annual Report on the Interim Inspection Program Related to Audits of Brokers and Dealers.” The PCAOB inspected 61 firms and reviewed 103 broker-dealer audits in 2025. Overall, the Board observed a decrease in deficiency rates in examination, review, and audit engagements, yet the Board noted opportunities for continued improvement by audit firms. The highest number of identified deficiencies were in the areas of revenue, evaluating audit results, and journal entries. The revenue deficiencies generally involved insufficient testing of revenue accuracy, satisfaction of performance obligations, and related disclosure requirements. Regarding evaluating audit results, the Board noted that some firms failed to consistently assess whether the broker-dealer financial statements were presented in accordance with General Accepted Accounting Principles (GAAP). Additionally, according to the report, some firms did not consider fraud risks when identifying journal entries for testing or did not provide an appropriate rationale for excluding specific journal entries from their testing.
The news release can be found here. The annual report can be found here and the supplementary information can be found here.