APB Issues Practice Note 21
The Auditing Practices Board (APB) has issued Practice Note (PN) 21 : The Audit of Investment Businesses in the United Kingdom (Revised). The revised PN 21 updates the 2000 version of PN 21 and includes the incorporation of:
- Bulletin 2001/7 - supplementary guidance for auditors of investment businesses following 'N2'
- Bulletin 2005/2 - audit risk and fraud - supplementary guidance for auditors of investment businesses
- changes necessary to reflect the replacement of Statements of Auditing Practice with ISAs (UK and Ireland)
- such changes necessary to reflect the law and FSA rules which are in effect at 31 December 2007. These include the changes to FSA rules following the introduction of the Markets in Financial Instruments Directive [MiFID] and the removal of the previous requirement for auditors to report to the FSA under FSA Handbook section SUP 3.9
- new guidance on the review of controls over client assets as required for the purpose of reports to the FSA under FSA Handbook section SUP 3.10.
PN 21 (Revised) may be downloaded from APB's website