Ssae 18 Reporting On Controls At A Service Organization

Service organization controls soc 9 9 2020.

Ssae 18 reporting on controls at a service organization.

Increasingly businesses outsource basic functions such as data storage and access to applications to cloud service providers csps and other service organizations. 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. Focuses on the impact of ssae 18 on soc 1 examinations and the re codified. In this article soc 1 2 and 3 reports overview.

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. Much like sas 70 ssae 18 provides two 2 reporting options. 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. 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.

6 minutes to read. 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. Entity s internal control over financial reporting that is integrated with an audit of its financial statements and related attestation interpretation no. 1 reporting under section 112 of the federal deposit insurance corporation improvement act aicpa professional standards at sec.

Ssae 18 requires controls to be implemented that monitor the effectiveness of controls at the. 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. 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.

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. For full details you can downloaded here.