The Public Company Accounting Oversight Board has proposed a temporary rule to establish an interim inspection program of registered CPA firms' audits of broker and dealers. PCAOB proposed the rules for public comment as it implements provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

In a prepared statement, acting PCAOB Chairman Daniel Glozer said the board has taken the "first steps along the path to creating a robust oversight program for accounting firms that audit securities brokers and dealers. In particular, the proposed interim inspection program would provide the Board with insight about how to maximize the benefits of broker-dealer inspections to the investing public in an effective and efficient manner."

The temporary rule would establish an interim program while the board considers the scope of a permanent program. Under the temporary rule the board could begin inspect auditors and address any significant issues it finds with audits. The permanent program is expected to be implemented no later than two years after the implementation of a temporary program.