Introduction to Investment Advisor: SEC Audit

The SEC administers federal securities legislation in the United States. Basically, SEC’s regulation ensures securities markets operate equally and consistently, that securities practitioners are fair to its clients, and that any company readily discloses sensitive details. Hence, investors have the right information to determine. SEC audits are a method of ensuring that businesses comply with its laws and regulations.

Regular audits in the investment business are a routine event. For any investment advisor, an SEC (The Securities and Exchange Commission) audit is considered almost unavoidable. SEC enforcement should be a vital element of any everyday business activity because unfavorable auditing can result in consequences such as a letter of deficiency, fines, customer mistrust, or worse. The time for starting and completing an audit varies according to the company’s size and the quality of its internal book maintenance, accounts, and records. Generally, the audit process should last from 3 to 6 weeks if the records of a company are in order.

Expectations in an SEC audit:

When it comes to an SEC audit, it is crucial to know what to expect so that you can make sure that the process is going smoothly and that the results are positive. In a consultative audit, you will usually have to plan some details.

  • Customer lists, including their account form and asset value.
  • Accounts created or terminated in a specific time period.
  • Price and quotation services list.
  • Order memorandums
  • A chronological trade list.
  • Policies and Procedures
  • Books and Records

Professional help:

At NMAP Corp we have auditing professionals ready to assist with an SEC audit of your company.As a successful audit assistance company we shall start preparing documents before an audit to ensure that the audit and SEC submissions are made cost-effectively and promptly.

To be prepared:

Since the SEC undertakes periodic audits, it is advisable to uphold SEC regulations and standards in accordance with your business. It is also a good idea to conduct an internal audit on your own on a regular basis or to hire an outsourced internal audit firm or other audit professionals. This helps detect any system vulnerabilities before an inspection of the SEC so that issues can be addressed well before problems occur during the advisor audit.

In order to reduce any unnecessary time or money expense for your client, the best SEC audit approach is to concentrate on SEC enforcement beforehand. Next time your company is inspected by the SEC, you would be ready to ensure that the audit is conducted as smoothly as possible.

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