FSA is consulting on how to improve the auditor's report on client assets. It has found significant serious failings in the general standard of these reports. Failings included:
- providing "clean" reports when in fact the firm had been in breach of CASS requirements; - covering the wrong CASS rules;
- submitting late reports, often with fundamental errors in them; and
- not explaining issues and exceptions properly. FSA wants to clarify what it expects from reports as well as taking the opportunity to set requirements that will enable FSA to make better use of the information. Finally, it sets out ways of improving firms' governance oversight of their auditors and CASS compliance generally. FSA asks for comment by 31 December.
(Source: FSA/PN/147/2010 and Consultation Paper 10/20**: Improving the auditor's report on client assets)