Alexander Chertok, ACCA, DipIFR
Audit Manager
- Government Audits (GAGAS / Yellow Book)
- Single Audits (Uniform Guidance)
- GAAS and PCAOB Audit Standards
Broker-Dealer Audit Services
Talk with Dimov Audit about your broker-dealer audit. Request a custom quote scoped to your firm's regulatory profile and reporting obligations.
Why a broker-dealer audit matters
- Broker-dealers face some of the heaviest regulation in finance, where small compliance failures can turn into penalties, reputational damage, or restatements.
- A broker-dealer audit verifies that financial reporting, customer funds, trade execution, and regulatory filings are accurate and compliant.
- Dimov Audit provides independent broker-dealer audits that catch risks early, strengthen internal controls, and keep firms aligned with SEC and FINRA expectations.
Why an SEC and FINRA framework matters
Broker-dealers operate under strict oversight from the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which require firms to maintain robust internal controls, safeguard customer assets, and report financial and operational data accurately.
Unlike a standard corporate audit, a broker-dealer audit works within highly specialized regulatory frameworks: net capital requirements, customer reserve computations, securities transaction reporting, and anti-money laundering obligations. Even firms with strong accounting teams can develop compliance gaps as systems and transaction volumes grow.
Our SEC and FINRA Audit Process
Rigorous reviewRegulatory confidenceClear results
- 1
Initial Consultation
We assess the firm's operations, regulatory profile, and audit requirements.
- 2
Risk & Regulatory Analysis
We identify key regulatory risks, reporting obligations, and control sensitivities.
- 3
Data & Documentation Review
We collect financial records, trade data, regulatory filings, and compliance documentation.
- 4
Audit Testing & Procedures
We perform detailed testing of financial statements, net capital computations, and operational controls.
- 5
Findings & Regulatory Assessment
We document discrepancies, compliance issues, and internal control weaknesses.
- 6
Final Audit Report
We deliver a comprehensive report suitable for regulators, internal management, or external stakeholders.
Stronger compliance. Accurate reporting. Regulatory confidence.
What the review covers
What a broker-dealer compliance review covers
Each audit begins with a detailed understanding of your firm's structure, business model, and regulatory obligations. We then assess how financial and operational systems interact with compliance requirements.
- Financial statement accuracy and supporting documentation
- Net capital computations and related adjustments
- Customer reserve requirements and segregation of funds
- Trade processing and settlement systems
- Revenue recognition and commission structures
- Regulatory filings, including FOCUS reports
- Internal controls over financial reporting
- AML compliance programs and procedures
We also evaluate whether the firm's operational infrastructure supports ongoing regulatory compliance or whether structural weaknesses increase long-term risk exposure.
Schedule your audit
Small compliance gaps can become major regulatory issues.
Schedule your broker-dealer audit or request a custom quote scoped to your firm's regulatory profile. We'll help you strengthen your compliance posture and reduce regulatory risk.
Common findings
Common issues a broker-dealer audit uncovers
Across firms of all sizes, broker-dealer audits surface a recurring set of problems.
- 1
Net capital computation errors
Small misclassifications of assets or liabilities shift the firm's regulatory capital position.
- 2
Customer reserve formula inaccuracies
Errors in segregating customer funds or miscalculated reserve requirements.
- 3
Trade settlement weaknesses
Delayed transaction recording or mismatches between trading systems and the general ledger.
- 4
Regulatory reporting issues
Fragmented data sources introduce inconsistencies into FOCUS reports and FINRA or SEC filings.
- 5
AML and compliance program gaps
Often in fast-growing firms, from incomplete documentation to insufficient monitoring.
Scoping
Scoping a broker-dealer financial audit
The cost of a broker-dealer audit depends on the scope and complexity of your firm rather than a fixed rate. Key drivers include your transaction volume, the number of entities and systems involved, the complexity of your regulatory reporting obligations, and whether prior-period cleanup is needed before testing can begin.
Firms with multiple business lines, higher trade volumes, or more demanding FOCUS and customer reserve requirements typically require deeper testing. We scope each engagement to your specific regulatory profile and provide a custom quote before any work begins.
Why choose Dimov Audit
Independent broker-dealer audits at scale
Broker-dealer audits require deep familiarity with SEC regulations, FINRA standards, and the operational realities of securities firms. Our team combines audit expertise with practical financial services experience to deliver accurate, efficient, and regulator-ready audit reports.
1,000+
audit and assurance engagements completed
50
states served, nationwide coverage
14+
average years of experience per senior staff member
AICPA
peer-reviewed firm
The Benefits Go Beyond Compliance
While broker-dealer audit reports are primarily designed to ensure regulatory compliance, the benefits extend well beyond regulatory requirements.
Many firms discover that audit procedures help them streamline operations, improve data accuracy, and enhance coordination between trading, accounting, and compliance teams.
In some cases, audits uncover inefficiencies in commission structures, reporting systems, or reconciliation processes that directly impact profitability.
Even in firms with strong compliance records, the audit process provides assurance that systems are functioning correctly in a highly regulated environment.
That assurance is especially important in an industry where regulatory scrutiny continues to increase.
Small Compliance Gaps Can Become Major Regulatory Issues
Broker-dealer compliance issues rarely begin as major violations. They often start with small inconsistencies in reporting, minor timing differences in transaction recording, or overlooked adjustments in regulatory calculations.
Over time, these gaps can accumulate into significant regulatory exposure, including penalties, enforcement actions, or reputational harm.
Broker-dealer audited financial reports help firms ensure that their financial reporting, operational systems, and compliance programs are aligned with regulatory expectations and functioning as intended.
Your team
Meet your auditors
You work with senior auditors directly from planning through reporting — no surprise junior staffing, no handoffs between partners and managers.
Andrew Nartovich, DipIFR
Senior Auditor
- Financial Statement Audits
- IFRS and U.S. GAAP Reporting
- Risk-Based Audit Methodologies
Bobojon Bobojonov
Senior Auditor
- Financial Statement Audits
- IFRS and U.S. GAAP Compliance
- Internal Control Evaluation and Remediation
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
Email
hello@dimovaudit.comPhone
855-622-9009New York Office
211 E 43rd St Suite 628
New York, NY 10017
United States
FAQs
Broker-dealer audit FAQs
Are your financials audit-ready?
Are Your Financials Audit-Ready?
At Dimov Audit, we pride ourselves in quick communication, accurate work, and seamless delivery.