This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

ICAEW publishes guidance on providing assurance over benchmarks and indices

  • ICAEW (Institute of Chartered Accountants in England and Wales) (lt green) Image

27 Feb 2014

The Institute of Chartered Accountants in England and Wales (ICAEW) has today published guidance for auditors on how to provide assurance to their clients that benchmarks and indices are based on robust and reliable processes and are consistently applied.

The guidance has been issued in order to restore damaged confidence in the reliability of market indices and benchmarks in the wake of recent alleged manipulation in LIBOR and FOREX markets.  It will allow submitters to, and providers of, market rates, indices and benchmarks to obtain assurance based upon an agreed framework. 

The ICAEW comment: 

Confidence in benchmarks, indices and market rates is vital to a well-functioning financial system.  These rates can affect not only market transactions but the prices people pay for energy bills, petrol, foreign exchange and mortgages. 

The guidance, written for “audit and assurance practitioners who will undertake to express an opinion on benchmark or index submissions and compilations” covers areas such as:

  • Agreeing the engagement;
  • Planning and performing the engagement; and
  • Reporting and documentation 

Although, directed at auditors, the ICAEW highlight that the guidance will also be of interest to other parties such as compilers and publishers of benchmarks and indices and directors of companies and institutions which contribute to a benchmark, index or other reported price compilation. 

The guidance, ‘TECH02/14FSF: Assurance reports on benchmarks and indices’ can be downloaded from the ICAEW website.

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.