On 27 September 2010 the FSA published a consultation paper on improving the quality and consistency of auditor’s reports on client assets. The paper sets out FSA proposals to improve the quality and consistency of these reports. The proposed amendments to the Handbook will:
- Clarify the standards for reports and expected compliance with accounting standards and guidance.
- Require the use of standard templates for reports.
- Require reports to be signed by the individual within the audit fi rm with primary responsibility for the report in their own name.
- Require fi rms’ governing bodies to consider the fi ndings of reports.
- Bring FSA mandate rules back within the scope of reports.
- Require auditors to deliver reports within four months from the end of the reporting period.
The consultation period ends on 31 December 2010. The FSA has stated that if the proposals are introduced, auditors reports for periods ending 30 June 2011 will be required to meet the new requirements.