What are the applicable standards?
The UK’s Financial Reporting Council has issued an Assurance Standard which outlines the work CASS auditors need to perform in order to provide the assurance opinions above, and which emphasises the need for the CASS auditor to apply an insolvency mindset when completing these procedures. It also makes it clear that CASS auditors cannot apply a level of materiality to their work, unlike with financial statements audits. Therefore, any rule breach identified that relates to the period (whether identified by the firm or the CASS auditor), no matter how small, must be included in a Breaches Schedule which is appended to the report that is submitted to the FCA. In advance of the report being submitted to the FCA, the CASS auditor must deliver a draft copy to the firm so that the firm can provide its comments on the rule breaches included in the Breaches Schedule. The CASS auditor has no responsibility in respect of the firm’s comments.