A quick search for information on the GS 007 audit framework is enough to make your head spin. This article aims to clear some of the confusion by providing a clear understanding of GS 007's requirements and helping you determine whether it aligns with your organization's needs.
GS 007 is an assurance framework used in Australia to evaluate the controls of service organizations that provide investment management services. The framework is issued by the Australian Auditing and Assurance Standards Board (AUASB) and follows ASA 402 and ASAE 3402, which are Australian equivalents of ISA 402 and ISAE 3402.
It is mainly used by service organizations that support investment management, such as:
GS 007 outlines seven key control areas, which represent critical functions within investment management services.
Not all seven are mandatory for every service organization. The applicability of each control area depends on the specific services provided by the organization.
|
Control Area |
Description |
Mandatory? |
|
Custody |
Managing the safekeeping, recording, and settlement of assets and related income on behalf of clients. |
Only if relevant |
|
Asset Management |
Investing client funds by executing transactions, ensuring compliance, reconciling portfolios, and reporting performance. |
Only if relevant |
|
Property Management |
Managing real estate investments through property transactions, compliance monitoring, reconciliations, and reporting. |
Only if relevant |
|
Superannuation Member Administration |
Administering superannuation member accounts, including contributions, benefits, investment instructions, and reporting. |
Only if relevant |
|
Investment Administration |
Maintaining records of portfolio assets and liabilities, valuing portfolios, and providing financial and performance reports. |
Only if relevant |
|
Registry |
Maintaining investor records, processing transactions and corporate actions, controlling share/unit issuance, and managing voting processes. |
Generally expected |
|
Information Technology (IT) Controls |
Ensuring IT systems supporting investment management services are secure, reliable, and support accurate financial reporting. |
Generally expected |
GS 007 follows the Type 1 and Type 2 reporting structure, similar to SOC 1 or SOC 2:
Ready to learn more?
Want to find out more about the GS 007 standard and how it might tie into your audit requirements? Head to our contact page and fill out the form. Our portfolio manager, Roghan McMahon, will be in touch regarding your GS 007 requirements.