Update – auditors’ client asset reports

In their Policy Statement issued in March, the FSA confirmed their tightening of the rules covering auditors’ reports to the FSA over client money and custody assets.

The key change for the auditors is that they will be required to report by way of a limited assurance report in a prescribed FSA format.  And now - as for statutory accounts - these reports will be signed by the individual auditor who is responsible for the report. 

The main changes for firms themselves is that those charged with governance will now have to review the findings of the final report and, wherever applicable, provide comments on actions taken and/or mitigating factors (if any) related to identified breaches.

The deadline for these reports is unchanged – they are due no later than four months from the year end.

Related news articles - for FSA regulated firms.