What does SSAE 16 stand for?
Statement on Standards for Attestation Engagements #16
SSAE 16 stands for Statement on Standards for Attestation Engagements #16. In practice, SSAE is a set of auditing standards established by the AICPA to guide auditors, especially as they prepare SOC 1 reports.
Does SSAE 16 still exist?
Unlike earlier standards, SSAE 16 requires a written attestation from a service company’s management, stating that its description accurately represents organizational systems, control objectives, and operational activities that affect customers. SSAE 16 was superseded by SSAE 18 in 2017.
Is SSAE 16 mandatory?
The need for SSAE 16 certification differs from enterprise to enterprise and depends on the goal of the company. For example, if a company runs a data center that provides internal resources for employees on product development, then SSAE 16 certification might not be needed.
What does SSAE 16 provide?
These reports will now be considered SOC 2 audits and focus on controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy. SSAE 16 provides guidance on an auditing method, rather than mandating a specific control set.
Is SSAE 16 the same as SOC 2?
While SAS 70 and SSAE 16/SOC 1 are designed to measure financial controls, the SOC 2 audit is designed to measure Service Organization Controls related to: Security. Availability. Processing Integrity.
What is in a SSAE 16 report?
SSAE 16 is the Statements on Standards for Attestation Engagements no. 16. It provides a set of standards and guidance for attestation reporting on organizational controls and processes at service organizations. Audits using SSAE 16 generally result in System and Organizational Control (SOC 1) reports.
What replaced the SSAE 16?
SSAE 18
The AICPA has replaced the audit standard known as SSAE 16 with a new standard effective for report dates on or after May 1, 2017. This new standard, known as SSAE 18, is designed to address and clarify concerns over the clarity, length and complexity of the many other AICPA standards.
Who needs a SSAE 16 audit?
SSAE 16 (Statement on Standards for Attestation Engagements 16) is a must for CPAs (Certified Public Accountants) who need to follow the regulations set by the U.S. Auditing Standards Board (ASB). It describes and identifies how service companies report on compliance controls.
What is a SSAE 16 SOC 2 report?
SSAE-16 SOC 2 Type 2 stands for Standards of Attestations Engagement No. 16, System and Organizations Controls Report 2, Type 2. This AICPA-developed auditing report assesses how well organizations handle data security, system privacy, data confidentiality and data processing processes.
Are SSAE 16 and SOC 1 the same?
When referring to SSAE16 or SOC 1, what is the difference and how do you use these acronyms appropriately? Simply put, the SSAE No. 16 standard is the attestation standard used to create a SOC 1 branded report.
Is SOC 2 the same as SSAE 16?
SOC 2 Type 2 is one of three major reporting options used under SSAE-16 reporting standards. The others are SOC 1, which analyzes an organization’s financial reporting controls; and SOC 3, which analyzes the subject matter as SOC 2 but organizes results more for a general audience in mind.
Is SOC 1 the same as SSAE 16?
The terms are often times used interchangeably because of their relationship; but they are different. When referring to the ‘audit’, there is no single right way to do it; however, probably the most technically accurate phrase would be ‘SSAE 16 examination’. When referring to the report, ‘SOC 1 report’ should be used.
What is the difference between SSAE 16 and SOC 2?
What is a SSAE 16 SOC 1 report?
The SSAE 16 audit will result in a Service Organization Control (SOC) 1 report. This report focuses on internal controls over financial reporting. A SOC 1, Type 1 report focuses on the auditors’ opinion of the accuracy and completeness of the data center management’s design of controls, system and/or service.
What is the difference between SAS 70 and SSAE 16?
What’s the difference between SSAE 16 and SAS 70? One of the key differences between the SAS 70 and the SSAE 16 is that the SAS 70 is an “auditing” standard, whereas the SSAE 16 is an “attestation”.