Financial services audit and assurance
Firms in the financial services sector face some of the strictest reporting obligations in any industry. Every regulator – the FCA, PRA, and capital markets authorities – demands transparency, accurate financial reporting and timely disclosure. Your auditor needs to match that standard – and understand the regulatory compliance framework behind it.
We provide audit services and assurance services to FCA-regulated financial services firms, including investment managers, insurance intermediaries, bank subsidiaries, wealth management companies, and those active in the capital market. Our dedicated team brings deep technical knowledge of the regulatory landscape and the specific accounting challenges the financial sector (FS) creates.
What is a financial services audit?
A financial services audit examines whether a regulated firm’s financial statements give a true and fair view of its financial position. But it goes further than a standard commercial audit. The auditor must also consider the firm’s regulatory compliance, its capital adequacy position, client money handling, and the reporting frameworks that apply.
An independent audit of financial statements in the financial services industry is not just about the numbers. It covers business models, governance structures, and the quality of disclosure. For firms reporting under IFRS, the audit process covers areas like fair value measurement, hedge accounting, and expected credit loss provisioning. UK GAAP reporters face different challenges around FRS 102 Section 11 and 12 financial instrument disclosures.
Sectors we cover
Our financial services audit work spans several sub-sectors:
- Investment managers and asset managers – fund-level and management company engagements, CASS compliance, and performance fee calculations
- Insurance intermediaries – client money audit, IBA reconciliations, and commission income recognition
- Capital markets participants – CASS audit, best execution reporting, and MiFID II requirements
- Fintech and payment services firms – safeguarding audit, e-money reconciliations, and regulatory capital calculations
- Wealth management and asset management – client portfolio valuation, suitability file reviews, and FCA Section 166 skilled person reports
CASS audit and client money
FCA-regulated firms that hold client money or custody assets must comply with the Client Assets Sourcebook (CASS). The CASS audit is a specialist engagement separate from the financial audit of the company’s own accounts. We examine the firm’s client money and custody asset arrangements and report directly to the FCA.
Getting CASS wrong has serious consequences. The FCA treats client money failures as a priority enforcement matter, and firms face regulatory scrutiny at every stage. Our work with audit committees and compliance teams helps financial services clients maintain strong CASS controls and build trust with their own stakeholders.
Our audit approach for UK financial services
We don’t apply a generic checklist. At planning stage, we invest time to understand your business model, the risks you’re managing, and the regulation that shapes your operations. We use technology to deliver audit work more effectively – from data analytics and automation on large volumes of data to risk-based testing of controls. Digital transformation, technology and innovation are changing the landscape. Our agile, multidisciplinary team brings deep technical expertise to every engagement.
We tailor every engagement. Our audits are tailored to the firm’s risk profile, and we deliver high quality services to clients of all sizes. That means the audit committee gets clear, direct reporting on the issues that matter. Our approach helps build confidence in your financial statements and gives your board the assurance they need. Audit quality is at the centre of everything we do.
Tax, VAT, and audit and advisory services
Many of our regulated clients also need help with tax planning and regulatory compliance. Corporation tax for regulated firms often involves deferred tax positions, transfer pricing on intra-group arrangements, and VAT partial exemption calculations. Insurer clients face additional complexity around Insurance Premium Tax and Solvency II reporting. We also handle HMRC enquiries and ESG-related reporting obligations where these affect the engagement.
Every accountant on our team has professional service experience across the sector, covering United Kingdom regulatory standards and international frameworks alike. We work alongside your finance team on these areas, bringing accounting knowledge and practical experience of the rules that apply. Whether you’re auditing financial controls or seeking a quality audit opinion, trust and confidence in the outcome is what we aim for.
Why firms choose us
We’re ICAEW-regulated and on the Register of Statutory Auditors. We offer specialist financial audit without Big Four overhead, with full integrity and transparency on fees. A strong audit can protect your reputation and build investor confidence. Good governance starts with an audit you can trust, and we’ve built our reputation on delivering exactly that across the sector.
Every stakeholder – from board members to investors to regulators – deserves confidence in the numbers. If your firm needs an auditor who understands financial services, call us on 0161 832 4451 or request a callback.
