Thursday, October 15, 2009

SYSTEMS AUDIT OF MUTUAL FUNDS

Considering the importance of systems audit in the technology driven asset management activity, it has been decided that mutual funds shall have a systems audit conducted by an independent CISA/CISM qualified or equivalent auditor (DISA). The systems audit should be comprehensive
encompassing audit of systems and processes inter alia related to examination of integration of front office system with the back office system, fund accounting system for calculation of net asset values, financial accounting and reporting system for the AMC, Unit-holder administration and servicing systems for customer service, funds flow process, system processes for meeting regulatory requirements, prudential investment limits and access rights to systems interface. Accordingly, MF are advised to get the above systems audit conducted once in two years. For the financial years April 2008 - March 2010, the systems audit should be completed by September 30, 2010.

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