The Auditing and Assurance Standards Board (AUASB) recently announced the released of GS 007 Audit implications of the use of service organisations for investment management services.

GS 007 will be used by custodians, third party administrators, investment managers, registrars and financial institutions in providing reports to assist in the audits of their clients.

According to the AUASB, concerns have been raised regarding the scope of the assurance work being conducted on reports from service organisations. The AUASB has therefore clarified the guidance in this area to improve audit quality.

GS 007 is effective from 1 July 2008 and replaces previous guidance which applied only to superannuation funds.

In addition, GS 007 also extends the outsourced services covered by the guidance to include investment management services, including custody, asset management, property management, superannuation member administration, investment administration and registry.

For further information, download GS 007 from the AUASB website.