Nacha is continuing to crack down on auditing for all Third-Party Service Providers and Third-Party Senders.  In order to remain in compliance, these entities must conduct an audit of compliance by December 31, 2020.

Many myths surround the Nacha audit, and at EFX, we are working to dispel them to help our clients.

Busting Nacha Auditing Myths

Myth 1: Audits are Stressful

Audits are designed to catch major risks versus minor issues.  While many people envision an audit as a stressful, time consuming, and tedious process, it doesn’t have to be.  

The Nacha Operating Rules do not prescribe the manner or methodology for completing the audit. The audit may be either an internal or external audit, provided that it is conducted in accordance with standard auditing procedures under the direction of the audit committee, audit manager, senior-level officer, or independent (external) examiner or auditor of the Third-Party Service Provider, or Third-party Sender.

In order to alleviate stress, increase efficiency, and ensure proper completion, EFX recommends partnering with an independent auditing firm.

Myth 2:  Audits are Confusing

Nacha Rules can be complex, but don’t let that deter you.  The Rules are designed to help you, and there are auditing partners that can help guide you through the auditing process.  In fact, there are even partners that specialize in providing guidance in a vernacular that provides an easier understanding of Rules requirements as well. 

There are multiple products on the market to assist you through an audit as well.  Some auditing partners even offer industry-specific workbooks to assist you through your self-audit in layman’s terms.

Myth 3: Audits Are Time Consuming

While you should leave plenty of time to complete your audit on time, audits can be a low-hassle process when done correctly.  In fact, most companies with straightforward auditing needs can complete an audit using a workbook in as little as a weekend.

Myth 4: Audits Aren’t REALLY Necessary

Compliance is not an option but a requirement for all Third-Party Senders and “specific” Third-Party Service Providers. Failure of a Participating DFI to provide proof of completion of its own audit, or its Third-Party Service Provider’s and/or Third-Party Sender’s audit, according to procedures determined by the National Association may be considered a Class 2 rules violation.

In order to remain in compliance, complete your audit by December 31, 2020.

Get in touch with a qualified auditing partner 

EFX strongly recommends consulting a knowledgeable, professional firm for an independent and objective audit, independent of the ACH environment.  If you need a qualified auditing partner, contact an EFX representative today. We can connect you with vetted recommendations for your required audit.