News Summary: Watchdog IDs flaws in broker audits

AP News
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Posted: Aug 20, 2012 5:18 PM

INSPECTION FINDS FLAWS: A watchdog agency for the accounting industry says it's found numerous flaws in how some firms audited securities brokerages.

LAPSES IN ALL 23 AUDITS: The inspection by the Public Company Accounting Oversight Board found deficiencies in the entire sample of 23 audits of brokerages done by 10 accounting firms.

CHECKING FINANCIAL CUSHIONS: The auditor lapses included a failure to adequately verify how much financial cushion the brokerages held against potential losses, and the accuracy of revenue figures the brokerages provided.