Consulting Firm Offers Mock Audits to RIAs

The service will begin in September and will be available initially to those RIAs established by RIA In A Box, the company said.

The mock audits, which take between three and five hours, will be performed by a compliance auditor, who will review the materials that the state or the SEC will look for during a standard first-year audit, the company explained. The compliance auditor will come to the RIA office and review materials such as the ADVs, client agreements, files and folders, books and records, policies and procedures, as well as advertising, marketing, and promotion materials. In addition, the RIA In A Box compliance auditor will answer compliance questions and interview the firm principal to ensure all the materials and information are in synch.

The compliance auditor will do a random sampling of all materials, take the information provided by the RIA owners, and provide an audit report highlighting any potential issues and suggestions for improvements.

While no one needs a mock audit, some people are concerned and “this is an easy way to make sure you are prepared,” said Zachary Gronich, president, RIA In A Box.

RIA In A Box works with all 50 states, Washington, DC, and the SEC. The firm is headquartered in Houston, Texas, and has recently opened an office in New York City.