Is your Accounting Firm Registered with the Public Company Accounting Oversight Board?

Unless an accounting firm is registered with the Public Company Accounting Oversight Board (PCAOB) in accordance with Section 102 of the Sarbanes-Oxley Act of 2002, it is prohibited from participating in, preparing or issuing audit reports on U.S. public companies. Since Sarbanes-Oxley also amended sections of the Securities Exchange Act of 1934 that govern the audit requirements of all broker-dealers, non-public broker-dealers are also subject to the provision of Sarbanes-Oxley.

On August 4, 2003, the Securities and Exchange Commission (SEC) delayed the implementation of the requirements for audits of non-public broker-dealers to be performed by accounting firms registered with the PCAOB until January 1, 2005. Subsequently, the SEC issued Release No. 34-50020 which further delayed the requirements until January 1, 2006. Accordingly, non-public broker-dealers may continue to use accounting firms not registered with the PCAOB for fiscal years ended through December 31, 2005. Unless further relief is granted by the SEC, all broker-dealer audits for fiscal years ending on or after January 31, 2006 must be performed by an accounting firm that is registered with the PCAOB.

To review Release No. 34-50020 issued by the SEC click on the following link http://www.pcaobus.org/pcaob_registration.asp and select Extension of SEC Order on Auditors of Broker-Dealers (7/14/04) under the title Registration Information.

To determine if your accounting firm is registered, click on the following link http://www.pcaobus.org/pcaob_registration.asp or contact Kristy Johnson, Financial Associate at (281) 863-6111.