What is the SSAE 18 examination?
As the basis for the Service Organization Controls (SOC) 1 report, the Statement on Standards for Attestation Engagements (SSAE) No. 16, which will be replaced by SSAE No. 18 as of May 1, 2017, assures your customers’ auditors that your service organization controls are well-designed and operating smoothly. The SSAE 18 examination helps to build ongoing and long-lasting trust between you and your customer.
How is SSAE 18 different from SSAE 16?
While the SSAE 16 was specific to SOC 1 audits, SSAE 18 is an umbrella standard that applies to most types of attestation engagements, clarifying and formalizing requirements to enhance their reporting potential. The SSAE 16 examination will no longer be referred to as an SSAE 16 examination but will simply be known as a SOC 1 examination.
What are the major changes in the SSAE 18 examination?
SSAE 18 features significant changes in the following areas:
- Vendor management
- Risk assessment
- Complementary subservice organization controls
- Data validation
Why is the SSAE 18 update important?
The SSAE 18 update is important because it responds to the needs of third-party service providers and respective changes in the business environment. Over the past several years, an increasing number of service organizations have completed SOC 1 examinations to satisfy customer demand and industry pressure.
What benefits will my company receive with the SSAE 18 changes?
With the changes from SSAE 16 to SSAE 18, your service organization can provide a broad-based, enhanced reporting of your control system, which creates greater assurance for your customers. At I.S. Partners, LLC, we can walk you through the changes and the benefits to your organization and customers.