News December 2018 FRC consults on client assets standard

FRC consults on client assets standard

06 December 2018
The FRC today launched a consultation to assess the effectiveness of the Client Asset Audit Standard (CASS Standard) which was introduced in 2015. The standard was developed both to support the Financial Conduct Authority’s regulatory activity and oversight of the CASS sector, and to provide a principles based framework to strengthen audit quality in response to some high profile and well publicised failures. Now that the standard has been used by auditors for three years, the FRC is seeking stakeholder feedback to determine whether further measures are needed to support audit quality in this area.
The standard was developed collaboratively with the FCA – the FRC now seeks input from any stakeholders who have an interest in the client assets regime, which holds trillions of pounds of assets and is of significant public interest. In the consultation, the FRC is also seeking views as to whether it should seek to develop a monitoring regime to provide a mechanism for better assessing the quality of CASS audit work undertaken in the UK. Feedback is requested by 4 March 2019.