The Financial Services Authority (FSA) has today confirmed rules to improve the quality and consistency of auditors’ client assets reports. The policy statement sets out ten new requirements for firms and their external auditors. In summary, these new rules will:
- Confirm and clarify the standards required for auditors’ client assets reports in order to provide clear focus of accountability;
- Increase the quality and consistency of information provided in the report so the FSA can better use it to undertake both firm and thematic reviews; and
- Improve firms’ governance oversight of their auditors and their compliance with the client assets rules.