Mock Audits & SEC Exam Readiness

Conducting a mock audit is an important exercise to review and test your firm’s compliance program thoroughly. With former prosecutors and CCOs on staff, Orical has assisted its clients through hundreds of actual exams and conducted a similar number of mock exercises.  

If you are an SEC-registered investment adviser, you are required to comply with the Investment Advisers act of 1940 (the “Adviser’s Act”). Rule 206(4)-7 under the Adviser’s Act requires investment advisers registered with the Commission to adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws. The Rule also requires advisers to review and test, at least annually, compliance policies and procedures and their implementation for adequacy and effectiveness.

Today’s sophisticated investors and regulators expect investment advisers and broker-dealers to employ compliance and operational infrastructure capable of detecting and preventing fraud and misconduct. Investor expectations and current regulations require firms to test periodically and fully document their compliance and control procedures.

Many investors and accepted industry best practices require that an adviser’s annual compliance testing be conducted and certified by an independent, third-party firm. Our compliance monitoring and mock audit programs provide an extra level of investor and client confidence and add that measure of independence expected by investors and regulators. All audit and monitoring program starts with a thorough risk assessment of all critical areas and appropriate firm infrastructure.

For any mock audit inquiries, please reach out to us at One of our experienced professionals will respond promptly.

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