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Nov 14, 2009 5:23 pm

I’m a month away from taking my Series 65 and read about the requirement for an annual (sometimes random) audit of a RIA firm. For those of you that own a RIA, is this rule just for SEC registered firms, or for state firms as well, and how do you go about arranging for a random audit? How much does it cost to be audited, or is it a gov’t provided “service”?

Thanks in advance!

Nov 19, 2009 7:11 pm


Nov 19, 2009 8:41 pm

It’s for both sec and state, they can come in at anytime. In my state, the first audit is usually the random one. It seems, since they have limited resources, that they canvas an area. If you are in that day, the you get a random audit -if not they move onto the next firm.

Right now you don’t need to pay anything. There are some dodos that are trying to have RIAs pay for annual audits by third party CPAs. But that hasn’t happened yet.

The audits are unannounced (random) or scheduled. In my area it would be every 3-4 years someone would come out. I speculate it may be longer now as more people are going RIA.