SEBI suggests systems audit for MF cos

According to mutual fund officials, this would bring more depth and rigour to the auditing process for mutual funds. Currently, the necessary systems checks and audits are done by the internal auditor, but these audits are more functional in nature and might not involve a very keen or analytical approach to auditing, said an industry official.

SEBI has also directed that the systems audit report and compliance status be placed before trustees of the mutual fund and that the report/findings along with trustees' comments be communicated to SEBI. For the financial years April 2008-March 2010, the systems audit should be completed by September 30, 2010, said a SEBI circular.

Investors put Rs 32,600 cr in MFs in August

SEBI has asked for a 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 (NAVs), financial accounting and reporting system for the asset management companies (AMCs), 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."

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All about: SEBI, MF, Mutual fund

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