Comment deadline for the ICAEW Discussion Paper on assurance over bank capital numbers
The Institute of Chartered Accountants in England and Wales (ICAEW) has published a Discussion Paper calling for auditors to be ready to provide independent assurance over bank capital numbers. The paper, which discusses the nature and extent of assurance to be provided, is the first stage in an ICAEW project to design an assurance framework for banks’ capital information.
The Discussion Paper Reporting on regulatory capital: choices for assurance :
- sets out the potential benefits of assurance over bank capital ratios and risk-weighted assets; and
- discusses the issues involved in designing an assurance engagement on capital ratios and related information. These issues include assurance reporting issues and scoping issues.
The ICAEW intends to develop a standard scope for an assurance report over regulatory capital so that banks can obtain assurance on a consistent basis. However, it is not proposing a requirement for banks to obtain such assurance; this, it suggests, should be derived from market demand.
Comments on the Discussion Paper are requested by 16 October 2015
