GlobeOp Financial Services (LSE:GO.) announced today it has successfully completed a Type ll independent examination of its middle, back office and fund administration controls and Transaction Solutions, according to new international standards replacing Statement on Auditing Standards No.70 (SAS 70). The Big Four auditing firm examination included all 10 GlobeOp offices on three continents, and evaluated the design and operating effectiveness of specified GlobeOp controls for the full year from October 1, 2009 to September 30, 2010.
The two new standards replacing SAS 70 are the International Standard on Assurance Engagements (ISAE) 3402 âAssurance reports on controls at a service organizationâ, and the Statement on Standards for Attestation Engagements (SSAE) No.16, âReporting on controls at a service organisationâ. With the new standards becoming mandatory for service organisations in 2011, GlobeOp ranks among the few companies adopting the new standards immediately. For the past three years it has successfully completed SAS 70 Type ll examinations.
âRobust process controls underpin our âremarkable serviceâ commitment to our clients and provide due diligence reassurance to investors,â said Vernon Barback, GlobeOp president and COO. âWe believe we are among the first administrators successfully examined under the new standards. As a global service provider, we adopted the new international standards as an improvement over country-specific examination and reporting options. The new standards offer clients and investors greater transparency into the accountability we take for our process controls environment and culture.
âThe most significant change in the ISAE 3402 and SSAE No.16 standards is the written assertion from our management team attesting to the fair presentation, suitable design and operating effectiveness of controls, supplementing the auditorâs opinion and report,â Barback added. âThe new standards draw primarily on the proven and familiar SAS 70 examinations, but the service auditorâs opinion has changed significantly. Clients, their auditors and investors will welcome its more user-friendly language. We will continue our annual re-certification process with the new standards on a rolling 12-month basis.â
This year GlobeOp again increased the scope of its examination, to include Independent Valuation Services, whole loan operations, automated shareholder allocations and German Aktiengewinn tax calculations.
As in previous years, the 2010 examination scope included controls that support new fund client set-up; daily and month-end processes; reconciliations of trades, positions and cash; net asset value (NAV) production; investment valuation; loans operations; client financial reporting; and investor services procedures. The information technology controls examined related to logical and physical security, data transmission, change and problem management, and system back-up and recovery and job scheduling.