UK: improving auditors' reports on client assets

The Financial Services Authority has today published a consultation paper containing proposals designed to improve auditors' reports on client assets: see here (pdf). The accompanying press release provides this background information:

As part of its more intensive approach to supervision and enhanced focus on client assets, the FSA has reviewed the quality and consistency of auditors’ reports submitted in this regard. A number of serious failings were identified – these were not localised to one or a limited number of auditors, but indicate a general deficiency by auditors in applying the FSA requirements on client assets, and a need to take steps to improve the quality of auditors’ reports".