For many auditors of FCA firms, a challenging and high-risk aspect of the engagement is the client money and/or assets (CASS) audit. In late 2015, the FRC issued a specific assurance standard to govern such CASS audits, and yesterday the FRC published an exposure draft of a revised CASS Assurance Standard, following its call for post-implementation feedback in December 2018.
The proposed revisions are generally limited. However, one change that will be welcomed is the proposal that, for CASS firms classified by the FCA as small (or which are unclassified), auditors may use judgement to determine whether an engagement quality control review (EQCR) is needed – currently this is mandated for all CASS reasonable assurance engagements.
The consultation period ends on Friday 27 September 2019 and the draft effective date for the revised standard is for reporting periods commencing on or after 1 January 2020. We will follow developments closely, and will update our two FCA Specialist Assignment Manuals, which deal with a variety of CASS audit scenarios, once the Standard is finalised.