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SSAE 16 Summary | 4 Important Points you Need to Know from NDB Accountants & Consultants

Thursday, July 7th, 2011 by admin

Need a quick SSAE 16 summary or primer on the new standard put forth by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA)? If so, take note of the following SSAE 16 summary areas:

1. SSAE 16 has effectively replaced SAS 70. SAS 70, which was put forth in April of 1992 is no longer an auditing standard in use.  This is critically important as it represents one of the most significant changes in reporting on controls for service organizations. For the first time in almost twenty years, we have a new “attest” standard for reporting.

2. SSAE 16 is part of a much bigger, broader change.  That’s right, not only did SSAE 16 replace SAS 70, but an entirely new reporting platform for service organizations has been introduced. Known as Service Organization Control (SOC) reports, organizations can now opt for SOC 1, SOC 2, and/or SOC 3 reporting.

3. Learn about the new SOC reporting options. The new AICPA alphabet of reporting on controls at service organizations can seem a little confusing, but for an ounce of clarity, try and remember the following for your SSAE 16 summary primer:

  • SOC 1 reports are to use the SSAE 16 standard and should generally be issued when there is a true and credible link or “nexus” to the internal control over financial reporting (ICFR) concept.
  • SOC 2 and SOC 3 reports are a great choice for the growing number of cloud computing and Software as a Service (SaaS) based entities.

4. Learn about the written statement of assertion and the description of the service organization’s “system”.  In short, the written statement of assertion requires management to effectively “assert” to a number of clauses regarding the actual assessment performed by a practitioner (i.e., CPA). Additionally, the description of the “system” requires management of the service organization to comprehensively document their “system”.

That’s a brief SSAE 16 summary for you, thus if you want to learn more about Statement on Standards for Attestation Engagements No. 16, visit the official SSAE 16 Resource Guide, developed by NDB Accountants &  Consultants, a nationally recognized PCAOB CPA firm.

Lastly, if you are in need of SSAE 16 services at a competitive, fixed-fee, contact NDB directly at 1-800-277-5415, ext. 706.

SSAE 16 Certification is NOT a Correct Phrase and here’s why!

Friday, July 1st, 2011 by admin

SSAE 16 Certification is a phrase I keep hearing over and over again. It’s not really a huge issue, but for an ounce of technical clarity, there is no such thing as SSAE 16 certification, just as there was no such thing as SAS 70 certification.  Both of these phrases were born out of a true misunderstanding of the historical SAS 70 auditing standard and the current SSAE 16 attest standard.  Technically speaking, SSAE 16 is an attestation standard put forth by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA), for which a practitioner (i.e., service auditor) uses the standard to perform an attest engagement for a service organization, resulting in the issuance of a service auditor’s report on controls.  There is no designation, certification, award, confirmation, or any other type of validation for an actual SSAE 16 assessment.

It’s best to summarize that a service organization simply undertakes an assessment in accordance with the SSAE 16 standard, resulting in the issuance of report with a stated opinion, generally unqualified, by a CPA firm as part of the report.

So, if you hear the term SSAE 16 certification, you can politely remind your colleagues or other interested parties that this technically incorrect.

With that said, if your organization is seeking a well-qualified, cost-effective provider for SSAE 16 assessment services, then contact NDB Accountants & Consultants, a nationally recognized PCAOB CPA firm, at 1-800-277-5415, ext. 706.

Additionally, if you want to learn more about SSAE 16, visit the official SSAE 16 Resource Guide, developed by NDB, where you can learn more about the following essential information:


NDB

Your Trusted Provider for SSAE 16 Compliance
  • Vast Experience Across Numerous Industries and Sectors
  • Fixed Fee Engagements for SSAE 16 Reports
  • Nationally Recognized PCAOB CPA Firm

Call 800-277-5415 ext. 706

Or Complete the SSAE 16 Contact Form Below:
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