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.
Written by Roghan McMahon, Audit Manager
What is GS 007?
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.
Who Does GS 007 apply to?
It is mainly used by service organizations that support investment management, such as:
What is the structure of GS 007?
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? |
|
1. Custody of Assets |
Ensures client assets are securely held, recorded accurately, and reconciled correctly. |
Only if relevant |
|
2. Investment Administration |
Covers investment transactions, reconciliations and reporting. |
Only if relevant |
|
3. Unit Pricing and Valuation |
Ensures accuracy in the calculation of unit prices and fund valuations. |
Only if relevant |
|
4. Registry Services |
Manages investor records, transactions, and reporting accuracy. |
Only if relevant |
|
5. Information Technology (IT) |
Focuses on IT security, system access, change management, and data integrity. |
Yes (if IT systems support services provided) |
|
6. Risk Management & Compliance |
Ensures compliance with laws, regulations, and internal policies. |
Generally expected |
|
7. Financial Reporting Controls |
Covers the accuracy and integrity of financial reports provided to clients. |
Generally expected |
GS 007 reporting & assurance types
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.