What is required for a brokerage's trust account audits according to the commission?

The requirement for a brokerage's trust account audits according to the commission necessitates maintaining detailed records that go beyond just deposit amounts and disbursement dates. This requirement ensures that all financial activities related to the trust account are transparent and verifiable.

Keeping only deposit amounts and disbursement dates would not provide a comprehensive overview of the trust account's activities. To maintain compliance and protect both the clients' and the brokerage's interests, detailed transaction records are essential. This includes complete transaction records for every activity in the trust account, reflecting accurate balances, sources of funds, and any disbursement made.

The need for complete transaction records not only enhances legal compliance but also supports the integrity of financial oversight within the brokerage. Regular reviews and audits, possibly by independent firms or internal staff, ensure that the trust account management meets the standards expected by the commission, but the core requirement is the meticulous upkeep of transaction records to facilitate such audits.