Quick Answer: What Is The Difference Between SSAE 16 And ISAE 3402?

What is the difference between SSAE 16 and SSAE 18?

SSAE 16 was specific to SOC 1 reports which deal with the controls at a service organization that impact financial reporting of the customers of the service organization.

By contrast, SSAE 18 refers to many different types of attestation reports, not just SOC 1 reports..

Is ISAE 3402 the same as SOC 1?

In SOC terms, ISAE 3402 is a SOC 1. ISAE 3402 defines two kinds of reports: Type I: Documenting a “snapshot” of the organisation’s controls. Type II: Documenting over a period of time (typically 6 months) showing controls have been managed over time.

What is an SSAE 18 report?

SSAE 18, Service Organizations (often referred to as SSAE 18 or SOC; and previously known as SSAE 16 or SAS 70) contains the rules for conducting an attestation of a service organization’s internal controls and issuing a System and Organization Controls’ (SOC) report.

Who needs a SOC 2 report?

SOC 2 requirements are mandatory for all engaged, technology-based service organizations that store client information in the cloud. Such businesses include those that provide SaaS and other cloud services while also using the cloud to store each respective, engaged client’s information.

What does SOC 1 Compliance mean?

SOC 1 compliance affirms the security of your services and gives your organization the ability to provide clients with evidence from an auditor who has actually seen your internal controls in place and operating.

When did SSAE 18 become effective?

May 1, 201718, effective on May 1, 2017, contains requirements and guidance for examining controls at service organizations that provide services to user entities where those controls are relevant to the user entities’ internal control over financial reporting.

What is in a SOC 2 report?

What’s in a SOC 2 report? There are five Trust Services Principles, or criteria, that comprise a SOC 2 report: Security, Availability, Processing Integrity, Confidentiality and Privacy. … The SOC II audit is simply the auditor’s opinion on how that organization’s controls fit the requirements.

Is ISAE 3402 the same as SOC 2?

ISAE 3402 is a third party (mainly suppliers) assurance mechanism in the form of SOC (Service Organisation Controls). … SOC1 report – Relates to assurance on controls that could impact financial statements. SOC2 report – Relates to assurance on IT controls. SOC3 report – Relates to assurance on IT controls.

What does ISAE stand for?

International Standard on Assurance EngagementsInternational Standard on Assurance Engagements (ISAE) No. 3402, Assurance Reports on Controls at a Service Organization, was issued in December 2009 by the International Auditing and Assurance Standards Board (IAASB), which is part of the International Federation of Accountants (IFAC).

Is SSAE 16 still valid?

Those service organizations are responsible for the physical and environmental controls that may impact a clients’ financial reporting. SSAE 16 is only valid through April 2017. As of May 1st, 2017, these reports will be referred to as SOC 1, not SSAE 18.

What does SOC II stand for?

Service Organization Control 2Soc 2, pronounced “sock two” and more formally known as Service Organization Control 2, reports on various organizational controls related to security, availability, processing integrity, confidentiality or privacy.

What is a SAS 70?

SAS 70 Overview. Statement on Auditing Standards (SAS) No. … 70 (also commonly referred to as a “SAS 70 Audit”) represents that a service organization has been through an in-depth examination of their control objectives and control activities, which often include controls over information technology and related processes …

Is ISAE 3402 mandatory?

In fact, the absence of ISAE 3402 can be a barrier to providing outsourcing in a highly regulated financial services world. And finally, the ISAE is not a performance standard. It is a reporting standard.

What is the difference between SSAE 16 and SOC 2?

The SSAE 16 audit will result in a Service Organization Control (SOC) 1 report. This report focuses on internal controls over financial reporting. … While a SOC 2 report includes service auditor testing and results, a SOC 3 report provides only the system description and auditor opinion.

What is a SOC 1 Type 2?

A SOC 1 Type 2 report is an internal controls report specifically intended to meet the needs of the OneLogin customers’ management and their auditors, as they evaluate the effect of the OneLogin controls on their own internal controls for financial reporting.

Is SSAE 16 required by law?

SSAE 16 is designed for service organizations and is often required by the client in order to gain insight into the company. This certification is gained after a company has had an audit of internal controls at a service organization that may relate to their client’s internal control over financial reporting.

Does SAS 70 still exist?

70 (SAS 70) Type II certificates were awarded to data centers that adhere to the industry’s strictest criteria. SAS 70 New Name: SAS 70 is now defunct and operating under SSAE 16. If a data center still lists a SAS 70 certification, it may be antiquated. But the requirements still hold their value, which are below.

What does SSAE 18 stand for?

Statement on Standards for Attestation EngagementsSSAE stands for Statement on Standards for Attestation Engagements. Overseen by the American Institute of Certified Public Accountants (AICPA), SSAE 18 governs the way organizations report on their various compliance controls.