CASS Revision Updates
Auditors who report to the FCA on regulated businesses will need to comply with new guidance under the Client Assets Assurance Standard (CASS), issued by the Financial Reporting Council (FRC).
The revised standard will apply to all CASS audits for reporting periods beginning on or after 1st January 2020, meaning the new standard will be fully adopted by April 2021. At the moment early adoption is not permitted.
The key change related to the requirement for engagement quality control reviews (EQCRs) for ‘reasonable assurance’ engagements. Paragraph 137 in the new version of the standard restricts the absolute requirement for EQCR’s in CASS audits of investment businesses classified by the FCA as large or medium sized, as set out in the FCA handbook.
This does mean that audits of smaller FCA regulated firms will not need to apply the EQCR, which add cost to the annual audit.
For further information on the changes to CASS, please contact Michaela Johns on 023 8046 1256.