AMG Issues SAS 70 Recommendations
The Asset Management Group of SIFMA is pleased to announce that it has issued recommended baseline areas of scope and control objectives for asset managers' SAS 70 reports. SAS 70 reports, which are issued in accordance with guidance from the American Institute of Certified Public Accountants to demonstrate that a firm has appropriate internal controls, are typically requested by the customers of asset managers, such as pension funds and mutual funds.
The AMG's SAS 70 Working Group worked for almost two years to develop the new standards in conjunction with members of the asset management community as well as with the four major accounting firms (Deloitte & Touche, KPMG, Ernst & Young and PricewaterhouseCoopers). The SAS 70 Working Group was chaired by AMG Steering Committee member, Joan Binstock, partner at Lord Abbett.
The recommended asset manager baseline areas of scope and control objectives include asset management operations and the IT general computer controls and were developed to make the audit reports more understandable and provide a more consistent reporting model for the industry. These AMG recommendations will be publicly issued in a brochure at SIFMA's Annual Meeting in Boca Raton (Nov. 7 - 9).
Click here to read SIFMA's Press Release (October 8, 2007)
Call for AMG Member Participation in Roundtable on FAS 157
One of the major drivers of change in mark-to-market practices is FAS 157, which was put forth by FASB to more clearly define the fair valuation process and establish a framework for measuring fair value. FAS 157 may require some asset management firms to develop procedures for the fair valuation disclosures in their financial statements. For some firms, there may be questions on how to achieve an appropriate level of detailed reporting consistent with the FASB requirements partly because there is no consistent accounting/auditing or business standard.
Members of the Asset Management Group are invited to participate in a Roundtable to discuss these questions and other FAS 157 issues that could impact the business activities of an asset management firm. If you are interested in participating in this member Roundtable, please contact Douglas Taggart at dtaggart@sifma.org.
Important Publications:
SIFMA Update
Washington Weekly
Weekly Report of the American Securitization Forum
SIFMA SmartBrief (past five issues)