NSD’s control procedures up to scratch
19 October 2015 Moscow
Image: Shutterstock
National Settlement Depository (NSD), Russia’s central securities depository, has passed its operational audit analysing control over settlement, depository, clearing and repository services, in compliance with the ISAE 3402 type II standard.
The audit found that NSD’s descriptions of its control procedures were an accurate reflection of the processes, and that control processes were designed properly and provided an acceptable level of assurance that the purposes of control were achieved.
Tested control procedures were also found to provide sufficient assurances that the purposes of control functioned efficiently.
Previously, the operational audit was in compliance with the ISAE 3402 type I standard, which mandated as assessment the design of control procedures with regards to the purposes of control.
The 2015 audit was in compliance with the type II standard, which requires more research, and also tested the operational efficiency of control procedures between 18 February and 18 August 2015. The new standard confirmed that as well as being designed correctly, the procedures are also functioning efficiently.
Legally, NSD is obliged to pass an operational audit at least every two years.
The audit found that NSD’s descriptions of its control procedures were an accurate reflection of the processes, and that control processes were designed properly and provided an acceptable level of assurance that the purposes of control were achieved.
Tested control procedures were also found to provide sufficient assurances that the purposes of control functioned efficiently.
Previously, the operational audit was in compliance with the ISAE 3402 type I standard, which mandated as assessment the design of control procedures with regards to the purposes of control.
The 2015 audit was in compliance with the type II standard, which requires more research, and also tested the operational efficiency of control procedures between 18 February and 18 August 2015. The new standard confirmed that as well as being designed correctly, the procedures are also functioning efficiently.
Legally, NSD is obliged to pass an operational audit at least every two years.
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