Credentials
Aspen’s commitment to excellence through academics, continuous learning, and expertise.
FULL TRANSPARENCY OF OPERATIONS
Independent Auditor practices, protocols, and professionalism. Updated April 16, 2024.
Authorizing Official
Auditors are deemed as the authorizing officials of documents presented; they are personally and professionally responsible for the content of those documents.
Academically Certified
Auditors are credentialed academically as Masters in one or more of the following: mathematics, data analysis, statistics, actuarial science, industrial organizational psychology, accounting, or finance.
Work History
Auditors have no less than five years’ experience in the application of the accredited academia as their primary profession.
Certified HR Experience
Auditors have documented five years of working experience and / or secondary academic accredited experience in human resources, employment practices, and / or labor relations.
Independent Status
We are independent auditors to remove dozens of conflicts of interest
Financial Relationships
Auditors have neither direct nor indirect financial relationship(s) with a primary integrator or software technology partnered with the technologies under audit.
Auditors have neither direct nor indirect financial relationship(s) with the organization and / or the technologies being audited. This includes, but it is not limited to, being a current or former employee, having direct stock or business ownership, and / or currently or formerly being either a user or auditor of any technology software included in the audit.
Systems of Record
Auditors can provide audit services to technologies and/or systems with embedded and/or integrated AI. It is reasonable to conclude that should those technology audits results in compliance, those results can be integrated into other audits for employers that are not technology systems. The Auditor is not prohibited from auditing on hardware or software systems purchased or considered for purchased by an Employer provided that relationship is disclosed and the results of that audit is shared.
Compensation
An auditor is not independent if, at any point during the audit and professional engagement period, any audit partner earns or receives compensation based on that partner procuring engagements with the audit client to provide any services other than audit, review, or attest services.
Cooling Off Period
A one-year cooling-off period before a member of the audit engagement team may accept employment in certain, designated positions with an audit client. An auditing firm is not independent if a member of management involved in overseeing reporting matters was the lead partner, the concurring partner, or any other member of the audit engagement team who provided more than ten hours of audit, review, or attest services for the issuer within the one-year period preceding the commencement of the audit of the current year.
Small Business
Some of these provisions may impose an undue burden on certain smaller accounting firms. Firms with fewer than five audit clients may be exempt from the partner rotation and compensation provisions, provided each of these engagements is subject to a special review or disclosure to relevant regulators that demand independent audits are submitted on a mandated concurrence.
Non-Auditing Services
Auditors can perform other services as a % of overall revenue
Broker / Promoter
Acting as a broker-dealer (registered or unregistered), promoter or underwriter on behalf of an audit client and similar activities will make the auditor an advocate for the audit client and will impair the auditor’s independence.
Appraisal & Evaluation
Appraisal and evaluation services include any process of valuing tangible or intangible resources, procedures, technology, or liabilities. Fairness opinions and contribution-in-kind reports are opinions and reports in which the firm provides its opinion on the adequacy of consideration in a transaction. An auditor is prohibited from providing such services unless it is reasonable to conclude that the results of these services will not be subject to audit procedures during an audit of the audit client’s employment actions.
Actuarial
These rules will prohibit an auditor from providing to an audit client any actuarially oriented advisory service involving the civil action penalties that are not defined in a relevant and applicable pending or enacted regulation. The auditor, however, may assist a client in understanding the methods, models, assumptions, and inputs used in computing the amount of potential fines and or penalties as listed in relevant and applicable pending or enacted regulations.
Management or HR
Auditors are prohibited from acting, temporarily or permanently, as a director, officer, or employee of an audit client, or performing any decision-making, supervisory, or ongoing monitoring function for the audit client. An auditor’s independence is impaired with respect to an audit client when the accountant seeks out prospective candidates for managerial, executive or director positions; acts as negotiator on the audit client’s behalf; or undertakes reference checks of prospective candidates. Under the rule, an auditor’s independence also will be impaired when the accountant engages in psychological testing or other formal testing or evaluation programs or recommends or advises the audit client to hire a specific candidate for a specific job.
Historical Reporting
Historical reporting or analyses prior to the effective date of an audit is permitted with the auditing client by an auditor provided they are declared as non-auditing services. Analyses to understand vulnerability or risk related to an audit is permissible.
Undue Burden
Some of these provisions may impose an undue burden on certain smaller accounting firms. Firms with fewer than five audit clients may be exempt from the partner rotation and compensation provisions, provided each of these engagements is subject to a special review or disclosure to relevant regulators that demand independent audits are submitted on a mandated concurrence.
Data Processing and Scope of Work
Our declarations of how we perform the work and how data is collected.
Declaration of Work
The scope of work can be limited to types of specific legislation or regulation and will be declared in the submission of the Audit.
Audit Construction
Documentation and presentation produced is standardized with all methods and statistical presentation the same for any organization audited.
Data Access
Auditors are granted direct, unfiltered, and unfettered access to any data included in the audit. Any data sent to an Auditor as part of non-auditing services are not valid to be part of an Audit unless the auditing client affirms is validity and holds harmless the Auditor of the veracity of the data for regulatory compliance.
Data Veracity
Auditors are prohibited from using data that has been delivered to the auditor which may have been filtered or altered from the organization.
User Access
Auditors are granted access to software users being audited within the organization.
Documents & Process
Auditors are granted access to documentation that details standard operating procedures for both the usage and features of the technologies and practices enabled at the organization.
Contracts & Purchases
The auditor has the right to obtain copies of all contracts related to technology use and features included in the software purchased that would be included in the audit with financials redacted.
Audit Contents
Details about how and what is contained in an Audit to ensure its formal nature
Accept & Acknowledge
The audit is accepted with signature by a member of senior staff of the organization being audited.
Model Disclosure
The auditor will use scoring, bias, or mathematical models that are indicated in legislation and / or regulation.
Alternate Models
If codes or regulations do not indicate specific measures, then the auditor will use multiple mathematical and / or statistical models and standards to validate the data being presented including counts, confidence, and source of data.
Compliance References
The audit will indicate the specific regulation and code being audited with reference to its current language and the date of the latest revision or passing.
Team / Personnel
The audit will include biographies of all audit personnel involved with the audit.
Insured / Continuity
The audit will offer a declaration of general liability and errors and omissions insurance within the audit. A copy of the firm’s business continuity plan is included in the submitted audit.
Activities & Fees Disclosure
The audit will reference the date and name of all agreements and statements of work with the organization including a declaration of fees to date.
Auditor Communication
(1) The auditing firm will report, prior to the filing of its audit report, all critical policies and practices used by the issuer; (2) all material alternative employment transactions or practices that have been discussed with management, including the ramifications of the use of such alternative treatments and disclosures and the treatment preferred by the auditing firm; and (3) other material written communications between the auditor and management.
Engagement
Transparency about our fees, auditor rotation, and foundational operations
Audit Team and Personnel
The audit will include biographies of all audit personnel involved with the audit.
Audit Partners
An audit partner will be defined as a partner who is a member of the audit engagement team who has responsibility for decision-making on significant auditing, regulatory compliance and reporting matters that affect the employment practices or who maintains regular contact with management and the human resources. The term audit partner will include the lead and concurring partners as well as partners who serve the client at the issuer level, other than a partner who consults with others on the audit engagement team regarding technical or industry-specific issues.
Partner Rotation
The lead and concurring partner must be subject to rotation requirements after five years. The rules will specify that the lead and concurring partner must rotate after five years and be subject to a five-year “time out” period after rotation. Additionally, certain other significant audit partners will be subject to a seven-year rotation requirement with a two-year time out period.
Fee Methodology for Audits
The Auditor will publish and assess fees that are standard for the determined scope of work to its auditing clients. Fee schedules are publicized and standardized at the discretion of the Auditor.
Fee Methodology for Non-Auditing Services
Non–auditing services are not subject to standard fees yet are declared in the audit and may impact the independent status of the auditor. An auditor’s independence is impaired with respect to any audit client when audit fees with all audit clients are without parity.
Insurance and Business Continuity
The audit will offer a declaration of general liability and errors and omissions insurance within the audit. A copy of the firm’s business continuity plan is included in the submitted audit.
Audit / Non-Audit Activity and Fee Disclosure
The audit will reference the date and name of all agreements and statements of work with the organization including a declaration of fees to date.
Communications
(1) The auditing firm will report, prior to the filing of its audit report, all critical policies and practices used by the issuer; (2) all material alternative employment transactions or practices that have been discussed with management, including the ramifications of the use of such alternative treatments and disclosures and the treatment preferred by the auditing firm; and (3) other material written communications between the auditor and management.
Business Operations
We believe in full transparency about our work, our compensation, and relationships with other companies in HR technology and services.
Pride in Our Unique Position
Aspen is unique in the analyst and audit space as combine data and business analysis, documented scientific methods, and are granted full transparency and access to client data. The combination of 1) science bound methods, 2) our documented 10 plus years in the HR analysis space, and 3) science and math based academic credentials means that our audits and analyses can be admitted into courts of law as evidence, and Aspen can be called for fact testimony.
This is an unusually high standard for the HR space. As such, we are pleased to provide clarity and transparency in how we work, how we are compensated, and our relationships within the HR technology and supplier ecosystem.
Legal Application of Audits / Analyses
When we perform an audit or analysis, a scientific method of investigation for that specific topic is designed and outlined. That method is executed with parity and fairness to the subjects analyzed. If the analysis is capability oriented (e.g. Aspen is analyzing a HR technology or outsourcing supplier for data security and compliance), we use the same methods to analyze that subject as we would another subject for another client.
Once a Vulnerability Scan is performed, primary inputs are gathered for descriptive analytics to validate that the data provided by the subject is 1) worthy of analysis and 2) has not been altered, 3) has evidence of repetitive data errors, or 4) requires significant proxy (data substitution).
Aspen reviews the Vulnerability Scan and produces its Audit that uses these methods. The Audit is not legal counsel or advice yet offers mathematical and scientific evidence of investigation, compliance, and action. The Audit is reviewed and co-authored by our Auditor General who has academic credentials and expertise that can certify the findings. The findings are submitted without bias, collusion, or 3rd party influence. The work can be submitted as part of an evidence procedure, so Aspen maintains a very strict set of standards to avoid any falsification, perjury offense, or fraud.
Relationships
How we work with other organizations in HR technology and services.
Conference Attending / Speaking
User Conferences, produced by an outsourcing or technology supplier
Aspen does not speak at or attend these conferences in person or virtually. We perform analysis work on the value, features and grade the impact of such systems, as such we are not permitted to attend or participate as it may create bias in our evaluations or worse be interpreted as advocating the brand or validating the integrity of the system’s data, security, compliance, or performance.
Industry Conferences, produced by a media company
Aspen has a long-standing history of attending and also speaking at HR / Recruitment conferences. In order to maintain its status as an unbiased auditor, members of the team may attend these events for education and awareness purposes, but the Auditor General rarely attends.
HR Technology and HR Service Provider Meetings in association with a live event
Aspen no longer attends such events to maintain fidelity to its auditing processes.
Technology and Outsourcing Providers
Vendor Demonstration Attendance and Presentation
Aspen will interview and/or the technology its clients use as part of Vulnerability Scans and Audits. attends demonstrations with providers on their technology. We ask a few questions and listen more than we talk. These sessions are aligned to investigating the use of the vendor’s services for a client and its compliance to relevant pending or enacted regulation. Aspen does NOT charge the vendor a fee for attending these sessions.
Using Third Party’s Products
Aspen will leverage software products to produce audits. Examples would include R Studio, Excel, Tableau, Visier, and Power BI. It also receives administrative or data collection user access for data access. However, Aspen does not demonstrate or advocate on behalf of any HR technology software.
Referrals from HR Technology Software or Outsourcing Services
We do have Clients that are HR Technology or Outsourcing Services providers. They are authorized to disclose we are their Auditor of Record. Selectively, if these organizations are Clients they may be authorized to “resell” our services alongside their own. However, these Clients must have 5-year relationships already under retainer with Aspen. They may also refer their own customers to Aspen for direct engagement, and Aspen will take those requests immediately. Aspen will present the Auditing pricing model to all Clients as discounting is not available to maintain parity of Audits.