Rule 418. Audit

This rule is no longer applicable. Incorporated NYSE Rule 418 has been superseded by FINRA Rule 4140. Please consult the appropriate FINRA Rule.

The Exchange may at any time require any member or member organization to cause an audit to be made by an independent public accountant of his or its accounts in accordance with the requirements of Exchange Rules and Rule 17a-5 under the Securities Exchange Act of 1934 ("Exchange Act").

Each member organization and each individual member not associated with a member organization doing any business in securities with others than members and member organizations of a national securities exchange is required to have an annual audit of its financial statements and reports conducted in accordance with the audit requirements of the Exchange and of the applicable requirements of the Securities and Exchange Commission by independent public accountants.

 

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Information Regarding Audits

 

.10 Each member and member organization subject to this rule shall file with the Exchange by December 10th of each year, an agreement in a form prescribed by the Exchange dated no later than December 1st with an independent public accountant covering its annual audit during the following year.
.12 Any member or member organization failing to file an audited financial and operational report under this rule in the prescribed time shall be subject to a $200 penalty for each day of delayed filing.
.15 The annual financial statements and operational reports filed with the Exchange shall include a statement attesting that such financial statements and operational reports have been or will be made available to all members or allied members of the organization. Such statement shall be signed by two members or allied members of the organization.
.20 A copy of each audited financial and operational report, all statements, schedules, other reports and all pertinent working papers and memoranda should be retained for at least three years. (Working papers, etc., must be made available for review by a representative of the Exchange at the office of the respondent or at the office of the independent public accountant.)
.25 Every member organization approved by the Securities and Exchange Commission, pursuant to Rule 15c3-1 under the Exchange Act, to use the alternative method of computing net capital contained in Appendix E to that Rule shall file such supplemental and alternative reports as may be prescribed by the Exchange.
Amendments.
February 7, 1974.
June 17, 1976.
August 16, 2005 (NYSE-2005-19).
February 27, 2006, effective March 8, 2006 (NYSE-2005-77).

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