Broker-Dealer Audits Without the Headaches: What Firms Should Know

30 Dec 2025 Broker-Dealer Audits Without the Headaches: What Firms Should Know

Authored by: McKenzie Harris

Broker-dealer audits may seem overwhelming, but they can be much easier with good preparation, expert support, and a clear understanding of what regulators are looking for. When you know what to expect and work with a team that truly understands broker-dealer compliance, the process becomes smoother and less disruptive.

Who This Is For

This article is designed for broker-dealer executives, CFOs, compliance officers, and finance leaders responsible for audit readiness, regulatory filings, and ongoing compliance with SEC and PCAOB requirements.

Why This Matters

Broker-dealers work in one of the most closely regulated parts of financial services. With PCAOB standards, SEC rules, FINRA oversight, and SIPC requirements, even small mistakes can cause delays or extra scrutiny. Preparing for audits ahead of time helps you stay compliant, improve your processes, and reduce stress at year-end.

Key Considerations for Broker-Dealer Audit Readiness

Stay Ahead of Net Capital and Reserve Requirements

Rules 15c3-1 and 15c3-3 are key for broker-dealer compliance. By checking net capital and reserve calculations all year, not just at year-end, you can avoid surprises and make audits go more smoothly.

Maintain Clear, Consistent Documentation

Audits go faster when your records are organized and kept up to date. Make sure schedules for clearing deposits, customer reserves, related-party transactions, and expense allocations are easy to find and match the general ledger.

Understand Your Rule 17a-5 Obligations.

Annual filings under Rule 17a-5 include more than just financial statements. Compliance reports, exemption reports, and internal control details all need to be accurate and complete. If finance and compliance teams work together early, it helps make sure everything is submitted on time and correctly.

Coordinate Early With Parent or Consolidated Entities

If your broker-dealer is part of a public company, it’s important to align your audit with the company’s overall reporting. Planning early helps you avoid doing the same work twice, running into schedule conflicts, or making last-minute changes.

Prepare for SIPC-7 AUP Procedures

SIPC-7 Agreed-Upon Procedures usually happen at the same time as the annual audit. Double-checking customer data, assessments, and calculations ahead of time can help you avoid delays and extra questions later.

Communicate Early and Often

Regulatory expectations can change over time. By staying in touch with your audit team all year, you can address new issues, changes in operations, or updates in regulations before they become problems.

Looking Ahead

The rules for broker-dealers keep getting more complex. Firms that focus on preparation, good documentation, and strong audit partnerships are better able to handle audits smoothly and keep regulators confident year after year.

How Haynie Supports Broker-Dealers

At Haynie, our Broker-Dealer team has strong expertise and a special focus on the Salt Lake market. While some firms are moving away from broker-dealer work, we have grown our team to meet the complex needs of this industry. Our clients get advice that fits the unique rules and challenges broker-dealers face.
Our dedicated broker-dealer audit team supports more than 25 broker-dealer clients, including consolidated public companies with broker-dealer subsidiaries. We provide high-quality PCAOB audits, compliance examinations, SIPC-7 AUP engagements, and ongoing regulatory insights, delivered with a practical and responsive approach.

Common Questions About Broker-Dealer Audits

What Are the Most Important Steps to Prepare for a Broker-Dealer Audit?

Key steps include monitoring net capital throughout the year, maintaining organized documentation, understanding Rule 17a-5 requirements, and communicating early with your audit team. Proactive preparation significantly reduces audit disruptions.

How Can Broker-Dealers Reduce Audit and Filing Delays?

Planning early, keeping reconciliations up to date, and making sure finance and compliance teams are on the same page can help you avoid last-minute problems. Auditors who know broker-dealers well also make the process more efficient and predictable.

Why Does Industry Specialization Matter for Broker-Dealer Audits?

Broker-dealer audits have special regulatory requirements that are different from other industries. A team that specializes in these audits knows SEC rules, PCAOB standards, and industry details, which means fewer surprises and better results.

Final Thoughts

Broker-dealer audits always need careful attention and a good understanding of regulations, but they don’t have to be difficult. With good preparation, clear records, and the right audit partner, the process can be organized, efficient, and manageable. If you want a team that truly understands broker-dealer audits, Haynie can help.