Report on the Description of the National Settlement Depository Controls, Suitability of Controls Design and Operating Effectiveness,
12 October, 2015
5
2.
Service auditor’s assurance report on controls at National
Settlement Depository
To: non-bank lending institution Closed Joint Stock Company "National Settlement Depository"
(hereinafter referred to as "NSD" or the “Company”)
Scope
We have been engaged to report on NSD’s description on pages 8-34 of its system of internal
controls covering settlement depository, clearing and repository services for the period
February, 18 to August, 18 2015 (hereinafter referred to as "Description"), and on the suitability
of the design and operating effectiveness of controls related to the control objectives stated in
the Description.
The Description indicates that certain control objectives specified in the Description can be
achieved only if complementary customer controls contemplated in the design of NSD’s system
of internal controls are suitably designed and operating effectively, along with related controls at
the service organization.
We have not evaluated the suitability of the design or operating effectiveness of such
complementary user entity controls.
NSD’s responsibilities
NSD is
responsible for:
preparing the Description (on pages 8-34) and the accompanying assertion (on page 3),
including the completeness, accuracy and method of presentation of the Description and
the assertion;
providing the services covered by the Description;
specifying the control objectives and stating them in the Description;
identifying the risks that threaten the achievement of the control objectives; and
identifying the criteria and designing, implementing and effectively operating controls to
achieve the stated control objectives.
Service auditor’s responsibilities
Our responsibility is to express an opinion on NSD’s Description and on the design and
operating effectiveness of controls related to the control objectives stated in that Description
based on our procedures. We conducted our engagement in accordance with International
Standard on Assurance Engagements 3402, ‘Assurance Reports on Controls at a Service
Organization’, issued by the International Auditing and Assurance Standards Board. That
standard requires that we comply with ethical requirements and plan and perform our
procedures to obtain reasonable assurance about whether, in all material respects, the
Description is fairly presented and the controls were suitably designed and operating effectively.
