The FSA has referred several auditors to auditing bodies after uncovering serious failings in client asset reports.
The regulator published a consultation paper on improving client asset reports last September following a review in 2009 which found that auditors were providing unchanged or “clean” reports despite significant breaches of client asset rules.
Last week, the FSA put out its final rules for auditors,m which include the requirement for a template to be used for the auditor’s report, the individual carrying out the audit to sign the report and a separate template identifying rule breaches.
Client assets unit leader Rich-ard Sutcliffe says: “We have seen serious failings in relation to auditors’ client assets reports and we have referred a num- ber of auditors to their rele- vant auditing bodies and are considering referring several other cases.”
CMS Cameron McKenna partner Paul Edmondson says: “Protection of client assets will remain a priority when the Financial Conduct Authority takes over the FSA’s client asset unit.”