Recertification Cycle

Glossary of the Settlement Integrity Institute · v1.0 · Group II — Operations

Definition

The defined cadence at which an Operational Readiness Assessment is renewed, together with the conditions outside that cadence — material changes to components, jurisdictions, or operating envelope — that trigger an interim reassessment. A determination that is not on a Recertification Cycle has a known issue date and an unknown expiration date, and is therefore not a continuing determination.

Notes

Mature assessment regimes operate on cycles. The PCAOB inspects firms with more than 100 issuer audit clients annually and other registered firms at least triennially.1 The NRSRO framework requires annual examinations.2 ISO/IEC 17065 conformity-assessment bodies operate surveillance cycles between full recertifications.3 Every one of these regimes is built on the recognition that an assessment fixed at a point in time, with no defined cadence and no triggers for interim review, is not an assessment of a continuing condition. It is a snapshot.

A Recertification Cycle is the procedural mechanism by which an Operational Readiness Assessment remains a current determination rather than a historical one. Within the cycle, the determination holds. Outside the cycle, or upon the occurrence of a material change to the Infrastructure Trust Boundary, it does not.

See also

Operational Readiness Assessment · Infrastructure Trust Boundary · Methodology Authority

References

  1. ↩ Public Company Accounting Oversight Board, PCAOB Inspections — Basics of Inspections (annual or triennial inspection cadence). pcaobus.org
  2. ↩ Securities and Exchange Commission, Office of Credit Ratings annual examination requirement under Section 15E(p)(3) of the Securities Exchange Act. sec.gov
  3. ↩ International Organization for Standardization & International Electrotechnical Commission, ISO/IEC 17065:2012 — Conformity Assessment: Requirements for Bodies Certifying Products, Processes and Services. iso.org