Broker-dealers are required to comply with Securities Exchange Act (“SEA”) Rule 15c3-1 (“Rule 15c3-1”), Net Capital, at all times. Net capital is a measure of a broker-dealer’s liquid net assets available at any time to satisfy customer protection requirements. Auditors of broker-dealers must ensure that a broker-dealer’s net capital computation complies with the requirements of Rule 15c3-1 and perform procedures to test the completeness and accuracy of that computation in accordance with Public Company Accounting Oversight Board (“PCAOB”) auditing standard 2701 (“AS 2701”), Auditing Supplemental Information Accompanying Audited Financial Statements. PCAOB inspections of broker-dealer audits commonly focus on net capital and the auditor’s procedures to test the net capital computation for compliance with Rule 15c3-1. Join two former PCAOB broker-dealer inspectors, as they discuss the net capital computation, the key aspects of Rule 15c3-1, the requirements of AS 2701, and common auditor net capital testing pitfalls.