Document ID: chunk:federal_register_of_legislation:F2024C01109:reg:4:p29
Version: federal_register_of_legislation:F2024C01109
Segment Type: reg
Provision Reference: reg 4 (pt 29/34)
Character Range: 199180–202800

Markets) 2017 in relation to clients' segregated accounts.
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Authorised in accordance with subrule 2.3.5(2)
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Authorised in accordance with subrule 2.3.5(2)
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Name
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Date

Form 1 Part 2
Annual Statement of Client Funds
Auditor's Report
We have audited the accounting records and internal control policies and procedures ("internal controls") of ..............................[entity name] (the "Participant") designed to ensure compliance with the requirements of Rule 2.2.6 of the ASIC Market Integrity Rules (Futures Markets) 2017 ("Futures Markets Rules") in relation to clients' segregated accounts (the "Clients' Segregated Accounts Rules") in order to express an opinion about their effectiveness for the period/year ended .................[date] ("the Financial Year").
The directors of the Participant are responsible for maintaining an effective internal control structure, including establishing and maintaining accounting records and effective internal controls designed to ensure compliance with the requirements of the Clients' Segregated Accounts Rules. We have conducted an independent audit of the internal controls designed to ensure compliance with the requirements of the Clients' Segregated Accounts Rules in order to express an opinion on them to the directors of the Participant for the Financial Year ended.........................[insert date].
Our audit has been conducted in accordance with Australian Auditing Standards and accordingly included such tests and procedures as we considered necessary in the circumstances. Our procedures included examination, on a test basis, of evidence supporting the Participant's accounting records and operation of its internal controls in relation to compliance with the requirements of the Clients' Segregated Accounts Rules. These procedures have been undertaken to form an opinion whether in all material aspects, the Participant maintained suitably designed and effective internal controls to ensure compliance with the requirements of the Clients' Segregated Accounts Rules for the Financial Year.
This report has been prepared for the Participant in order to meet its obligations to give this report to ASIC in accordance with paragraph 2.3.5(1)(b) of the Futures Markets Rules. We disclaim any assumption of responsibility for reliance on this report to any person other than the Participant and ASIC, or for any purpose other than that for which it was prepared.
Inherent Limitations
Because of the inherent limitations of any internal control structure it is possible that fraud, errors or noncompliance with laws and regulations may occur and not be detected. Further, the overall internal control structure, within which the internal controls designed to ensure compliance with the requirements of the Clients' Segregated Accounts Rules operate, has not been audited, and no opinion is expressed as to its effectiveness.
An audit is not designed to detect all weaknesses in internal controls or all instances of noncompliance with the requirements of the Clients' Segregated Accounts Rules as it is not performed continuously