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PCAOB Audit Tradecraft for the Broker-Dealer External Auditor

PCAOB Audit Tradecraft for the Broker-Dealer External Auditor

The PCAOB Interim Inspection Program is focused on the external auditor that provides services to the Broker-Dealer.


Immersing yourself in the PCAOB Audit Tradecraft for External Auditors of Broker-Dealers is akin to embarking on a quest for precision and unwavering commitment to auditing excellence. Central to this mission is the PCAOB's dedication to preventing financial misdeeds reminiscent of past scandals like Bernie Madoff. The PCAOB's inspection regime for Broker-Dealer auditors acts as a crucial layer of oversight, complementing the regulatory framework governing the Broker-Dealer sector.


As we delve into the intricacies of PCAOB inspections, it's clear that audit firms are called upon to conduct a thorough and introspective evaluation of their Broker-Dealer audit engagements. This endeavor transcends mere compliance; it's a deep dive into ensuring the firm's practices not only meet but embody the highest standards of ethical conduct and professional responsibility:

  • Are the firm's methodologies in harmony with PCAOB standards, reflecting a genuine commitment to these pivotal guidelines beyond simple compliance?
  • How has the firm navigated the identification and mitigation of substantial risks associated with Broker-Dealer compliance, safeguarding the integrity of financial statements under scrutiny?
  • In examining Internal Control over Compliance, what approaches have been adopted by the audit team to ensure a comprehensive and precise assessment?
  • Crucially, has the audit team upheld the independence mandated by SEC and PCAOB regulations throughout this process, thereby reinforcing the trust placed in them by the public and market stakeholders?


By addressing these questions directly, an audit firm not only responds to regulatory expectations but also demonstrates a profound commitment to transparency, excellence, and a sincere dedication to the public good.


To achieve such lofty standards, it's imperative for audit team members to cultivate daily behaviors or "tradecraft" that embody essential values for preventing failures. The focus of this CPE Event is to nurture such tradecraft, which includes:

  • Empathy and Understanding
  • Ethics and Integrity
  • Inquisitiveness and Intellectual Curiosity
  • Analytical Skills and Attention to Detail
  • Exceptional Communication Skills
  • Adaptability and Continuous Learning
  • Understanding Business Risk


Additionally, this event equips participants with a thorough grasp of PCAOB audit standards and offers insights into the regulatory landscape that shapes the accounting and auditing practices for public companies. Spanning a broad range of PCAOB regulatory activities, from auditing and ethics standards to independence and quality control standards, this seminar aims to empower CPA firm staff involved in PCAOB-regulated audits with practical knowledge.


This essential two-day CPE seminar is tailor-made for CPA firm staff who are instrumental in conducting audits regulated by the PCAOB. Participants will acquire the skills to craft effective audit workpapers designed to withstand PCAOB inspection rigor.


Participants of this PCAOB auditing standard CPE event will be awarded 2 CPE Event Hours (YB) and receive a certificate of completion.


Seize this chance to deepen your expertise in conducting PCAOB-regulated audits for SEC-regulated Broker-Dealers. Register today to gain invaluable insights and methodologies that will enhance your proficiency in PCAOB-regulated attestation engagements.

  • Details on Event Presentation

    Offered on Wednesday-Thursday once every six weeks in two six hour sessions for 12 CPE credits.

    The sessions will run from 9:00 a.m. to 3:00 p.m. Central Time Zone. There will be a lunch break from 12:00 noon to 12:30 p.m. each day.

    We can schedule private events on your timetable for two or more attendees.

    NASBA Program Disclosure

    Program Level of Understanding: Intermediate to advanced

    Prerequisites: None

    Advance Preparation: None

    Delivery Format: Group Internet Based

    NASBA Field(s) of Study: Auditing

    CPE Credits: 2, based on 50 minutes of instruction per hour

  • CPE Event Highlights

    The seminar reviews and answers the following questions:

    • What are the PCAOB Audit Standards?

    • What are the typical inspection report issues?

    • What are the key audit planning issues?

    • How does the COSO Framework fit together?

    • What is contained in an "ICFR" assessment program?

    • How should the "client" be documenting "ICFR" assessments?

    • How does this testing work?

  • Learning Objectives

    Attendees will:

    • Understand the PCAOB's key audit standards.

    • Understand risk assessment from the external audit viewpoint.

    • Have examples of client documentation.

    • Know how the components and principles are integrated within COSO framework.

    • Have an approach to issues concerning PCAOB compliance.

  • Key Issues on the Agenda

    Introductions and Background
    Section 1 - The PCAOB Broker Dealer Program
    Section 2 - Current PCAOB Auditing Standards
    Section 3 - Audit Planning and Risk Management
    Section 4 - Auditor's Approach to RA & CE Entity Level Controls
    Section 5 - Auditor's Approach to Process Controls
    Section 6 - Auditor Tradecraft Summary

  • Summary of the Subject Matter

    The "PCAOB Audit Tradecraft for the External Auditor" training event hosted by CCS is a comprehensive course designed to meet the PCAOB's continuing professional education (CPE) requirements for external auditors. This event provides a thorough overview of the PCAOB's expectations and standards for external auditors, as well as the latest techniques and methodologies in auditing. The course covers a wide range of topics, including the audit process, risk assessment, testing procedures, data analytics, communication, and documentation.

    Through this PCAOB training, external auditors will gain a deep understanding of the PCAOB's auditing standards (AS) and how they apply to the audit process. Also covered in the course will be the importance of internal control in auditing and how it affects audit compliance. Participants will leave the training equipped with the knowledge and skills needed to stay up-to-date with the latest developments in the field and ensure their audit services are in line with PCAOB standards.

    This auditor course is designed for experienced external auditors who are looking to improve their audit tradecraft and maintain PCAOB compliance. The "PCAOB Audit Tradecraft for the External Auditor" training event is a valuable opportunity for external auditors to enhance their skills and stay at the forefront of their field.

  • Authoritative Sources

    To further enrich your journey and deepen your understanding of these essential behaviors, CCS has curated a list of authoritative sources. Each of these resources serves as a beacon, guiding you towards not just compliance with standards but embodying the principles that define excellence in auditing, the "Tradecraft":

    Empathy and Understanding

    Harvard Business Review:

    • Explore articles on emotional intelligence and empathy in professional settings. Understanding the client's perspective and fostering effective communication is crucial.

    Ethics and Integrity

    Institute of Internal Auditors (IIA) - Code of Ethics:

    • A cornerstone resource for auditors seeking to uphold the highest ethical standards in their practice.

    Inquisitiveness and Intellectual Curiosity

    TED Talks:

    • Engage with talks that spark curiosity and inspire a lifelong love of learning, critical for staying ahead in the ever-evolving field of auditing.

    Analytical Skills and Attention to Detail

    American Accounting Association (AAA):

    • The AAA offers resources and journals that delve into the latest research and developments in accounting and auditing, perfect for honing analytical skills.

    Exceptional Communication Skills

    Toastmasters International:

    • Enhance your public speaking and communication skills through Toastmasters, a global organization dedicated to improving these essential capabilities.

    Understanding Business Risk

    Risk Management Association (RMA):

    • Provides insights, frameworks, and tools for effectively managing and understanding business risk, an indispensable aspect of auditing.

    By delving into these resources, you're not just expanding your knowledge; you're embracing a mindset that transcends the basics of auditing. You're committing to a path of personal and professional development that honors the essence of what it means to be an auditor—a guardian of financial integrity and a trusted advisor to the business world.

    Remember, the journey of mastering the PCAOB Audit Tradecraft and the behaviors that underpin it is ongoing. It's a commitment to constantly evolve, adapt, and grow in service of the greater good. Let these resources be your companions along the way, illuminating your path towards achieving not just

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