Accredited ACH Professional (AAP) Practice Exam

Which parties are required to conduct an annual audit?

1. Only RDFI

2. Only ODFI

3. RDFI and ODFI

4. RDFI, ODFI, and Third Party Sender

The correct answer is: RDFI, ODFI, and Third Party Sender

The requirement for conducting an annual audit applies to all parties involved in the ACH process, including the Receiving Depository Financial Institution (RDFI), the Originating Depository Financial Institution (ODFI), and Third Party Senders. This ensures that all entities adhere to NACHA operating rules and maintain the integrity of the ACH network. RDFIs must ensure they are compliant with the ACH rules and confirm they are accurately processing transactions received from ODFIs. ODFIs have a responsibility to oversee the activities of their Originators and protect the network from unlawful or improper transactions. Third Party Senders, who act as intermediaries that initiate entries on behalf of the Originator, also need to be in compliance, as their actions can directly affect the reliability and security of the electronic payments system. The annual audit helps in identifying any potential issues and ensuring compliance with regulatory standards, therefore maintaining the trust and confidence necessary for the ACH network to function effectively. By requiring all three parties to conduct these audits, it reinforces a culture of compliance and accountability throughout the ACH ecosystem.