Orangefield Group is proud to announce that it has received its ISAE 3402 Type II Report (formally SAS 70 Type II) for the year ended 31 December 2011.
The ISAE 3402 Type II Report is essentially a report on the effectiveness of a service organizations business procedures and internal controls.
In essence, the report describes the effectiveness of a service organisations’ internal control over financial reporting which requires an organisation to define their business processes and internal controls. An external auditor then checks: (i) that the designed processes are sufficient to achieve the stated control objectives; and (ii) tests if the actual operation of the processes and controls in the day-to-day business has been consistently compliant with those which were initially set out.
The ISAE 3402 Type II report covers the period from January 1, 2011 through December 31, 2011 and consisted of an evaluation of the description of controls together with extensive testing related to fund accounting (which includes new fund set up, transaction processing, cash and position reconciliations, valuations, cash receipts and disbursements, NAV calculations, performance and management fee processing and financial statement reporting), investor services and information technology (which includes logical and physical access security, change control management, and system back-up and recovery processes).
The International Auditing and Assurance Standards Board (IAASB) and the Auditing Standards Board (ASB) in the United States have undertaken to develop new standards for reporting on controls in service organisations with a truly global constituency in mind. As the importance of effective controls and reporting processes becomes more critical than ever, globalisation and regulatory changes have prompted the issuance of two new very similar standards that will effectively replace SAS 70. These new reporting standards are known as ISAE 3402 (International) and SSAE 16 (USA).
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