Ssae 18 Reporting On Controls At A Service Organization

Ssae 18 section 320 titled reporting on an examination of controls at a service organization relevant to user entities internal control over financial reporting defines two types of report formats type 1 and type 2 that vary in their content which further differentiates the level of service to be performed in an attestation engagement.

Ssae 18 reporting on controls at a service organization.

The ssae 18 standard will be used for reporting on controls at service organizations and as such the term service organization is defined as an organization providing services to user entities for which these services are likely to be relevant to these user entities internal control for financial reporting thus the term user entity is simply an organization using the service of a. The system and organization controls soc 2 report will be performed in accordance with at c 205 formerly under at 101 and based upon the trust services principles with the ability to test and report on the design type i and operating type ii effectiveness of a service organization s controls just like soc 1 ssae 18. Ssae 18 has essentially replaced the aging and historical sas 70 and ssae 16 auditing standards for reporting periods dated on or after may 1 2017. Type 1 a service organization s system and the suitability of the design of controls while a soc 1 ssae 18 type 2 report is.

18 standard clarifies all previous ssaes with the exception of. In this article soc 1 2 and 3 reports overview. Service organization controls soc 9 9 2020. A subservice organization is a service organization used by another service organization to perform some of the services provided to user entities that are likely to be relevant to those user entities internal controls over financial reporting.

Much like sas 70 ssae 18 provides two 2 reporting options. 6 minutes to read. Ssae 15 an examination of an entity s internal control over financial reporting that is integrated with an audit of its financial statements at sec. The control objectives within the service.

1 reporting under section 112 of the federal deposit insurance corporation improvement act aicpa professional standards at sec. Focuses on the impact of ssae 18 on soc 1 examinations and the re codified. Updated as of january 1 2018 the soc 2 guide provides how to guidance for service auditors performing examinations under ssae 18 clarified attestation standards to report on a service organization s controls over its system relevant to security availability processing integrity confidentiality or privacy. Across all attestation and examination engagements and at c section 320 reporting on an examination of controls at a service organization relevant to user entities internal control over financial reporting.

The asb issued the new ssae 18 attest standard back in april 2016. Entity s internal control over financial reporting that is integrated with an audit of its financial statements and related attestation interpretation no.