The first CASS audit reports under the new FRC standard are due to be sent to the FRC this week. It is expected that there will be a large increase in adverse opinions as the auditors now look for evidence of the CASS controls in place, and will no longer rely on just sample testing.
Increase in adverse opinions on CASS audits this week?
A firm may not have had a breech in a certain area, but may be deemed to not be able to show evidence that they have a control to prevent a hypothetical breech in that area. Many firms have struggled with the sheer volume of work required, and there will be delays where firms were not ready when the audit commenced, especially where there are dependencies on outsourced providers. Firms might not expect an adverse report if prior years were merely qualified, and may have underestimated the depth to which auditors are going to seek evidence in order to deliver an opinion.
How can AutoRek help?
AutoRek stands in the centre of a community of firms that use our software to automate and evidence a CASS control environment. We learn so much from supporting those CASS firms, and we seek to return the combined knowledge and help them to share their experiences of the interpretation and implementation of the CASS rules, and of the observations from the auditors and FCA. We run CASS roundtables to facilitate the sharing of experiences. If you are not an AutoRek client but would be interested in joining a future CASS roundtable, please get in touch.
Published On: 03 May 2017