National Settlement Depository, Russia’s central securities depository, has released results of the operational audit conducted by LLC PriceWaterhouseCoopers Consulting in compliance with the ISAE 3402 type II international standard. The audit company analyzed the depository’s processes of internal control over settlement, depository, clearing and repository services. Key conclusions of the report on the operational audit results include the following statements:
- The description of control procedures objectively reflected processes of providing settlement, depository, clearing and repository services which functioned in the period from 18 February to 18 August 2015;
- The control procedures connected with the purposes of the control indicated in the description of control procedures were designed in a proper manner and provided a sufficient level of assurance that the purposes of control were accomplished;
- The tested control procedures along with additional control procedures studied within the framework of operational audit to provide assurance that the purposes of control were accomplished functioned efficiently in the period from 18 February to 18 August 2015.
In 2012-2014, NSD passed the operational audit in compliance with the ISAE 3402 type I standard, which assumed an assessment of the conformity of the control procedures’ design with the purposes of control. The 2015 operational audit conducted in compliance with the ISAE 3402 type II standard assumed the greater volume of the research: in addition to the assessment of the conformity of the design of control procedures with the purposes of control, the audit company tested the control procedures’ operational efficiency in the period from 18 February to 18 August 2015. Thus, the audit conducted in compliance with the ISAE 3402 type II standard allowed to confirm not just the fact that control procedures had been designed in a proper manner but also that they functioned efficiently.
In accordance with the Law “On Central Securities Depository,” NSD is obligated to pass an operational audit in compliance with international standards for service organizations’ control systems at least biennially.
The full text of the report on operational audit is available here.