The responses to the CASS post implementation review are in, and they contain a few surprises. We’ve collated the text responses from the 24 responding firms into an easy to read report.
While most of the firms agree that the standard has at least met part of its objectives, more than half of all respondents believe that the independence requirement has either no impact or negative impact on confidence in the CASS audit. One of the biggest concerns we saw among the responses was the restrictions on auditor choice.
More than half also suggested that there would be benefits to bringing CASS audits within the Financial Reporting Council audit inspection and monitoring approach, even if only on a sample basis.
Nearly all respondents suggested the standard needed further changes, with key themes focused on adopting a more risk-based approach, stronger IT controls, greater proportionality and allowing room for professional judgement.
We believe that there are some good points in the review that should inform future iterations of the standard. As regulatory demands continue to increase, proportionality will be vital to ensuring both stability and viability of the CASS Audit.
Read the full summary here: FRC post implementation review on CASS assurance standard.