Many collection agencies are choosing SSAE 16 Professionals to perform their SSAE 16 audit because of our personalized approach. We have a unique blend of expertise coupled with good old fashioned client service.
Orange, CA (PRWEB) February 26, 2013
SSAE 16 Professionals has unveiled a specialty service line focusing on SSAE 16 reports for Collection Agencies. The primary function of a collection agency is to pursue and try to collect on the outstanding debt of businesses and individuals. Many times, a collection agency will act as a third-party agent of the creditor and is paid based on a fee or based off the total amount owed or collected. Prior to a company contracting with a third-party agent to perform collection duties, the company will want assurances that the collections agency is in compliance with laws and regulations, such as the Fair Debt Collection Practices Act (FDCPA).
In terms of internal controls, the contracting company will want to see the processes around receiving placements, processing collections, receipt of payments, reconciliation of receipts, and reporting of debts collected. The contracting company will want assurances, through review of the SSAE 16, that customer information is handled securely and debt payment is provided completely, timely, and accurately.
“Many collection agencies are choosing SSAE 16 Professionals to perform their SSAE 16 audit because of our personalized approach,” says Jim Jimenez, Managing Partner at SSAE 16 Professionals. “We have a unique blend of expertise coupled with good old fashioned client service.”
SSAE 16 (also known as SOC 1) Reports, which have effectively replaced SAS 70 reports, will be prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. SOC 1 reports retain the original purpose of SAS 70 by providing a means of reporting on the system of internal control for purposes of complying with internal control over financial reporting. The Sarbanes-Oxley Act (SOX) requires publicly traded companies to perform an annual financial statement audit, which includes key processes that may impact the company’s financial statements. If these public companies outsource one of these key processes to your company, you will need to undergo an SSAE16 audit. The SSAE 16 report can eliminate the need for your company to be subject to multiple audits from your customers and their respective auditors, most likely eliminating the need for your company receiving multiple visits from your customers’ auditors, which can place a huge strain and operational burden on your company’s limited resources.
In the past, SAS 70 reports encompassed financial reporting controls, operational controls, and compliance controls. SSAE 16 SOC 1 reports, which have effectively replaced SAS 70 reports, will be prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. SSAE 16 SOC 1 reports can no longer be used for any other purpose except for reporting on the system of internal control for purposes of complying with internal control over financial reporting. For reports that are not specifically focused on internal controls over financial reporting, the AICPA has issued an interpretation under AT Section 101 permitting service auditors to issue reports. These reports will now be considered SOC 2 audit reports. SOC 2 reports will focus on controls at a service organization relevant to one or more of the following Trust Services principles: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
SSAE 16 (SOC 1) & SOC 2 Type I and Type II Audit Reports
- SSAE 16 (SOC 1) and SOC 2 Type I Reports - A report on policies and procedures placed in operation as of a specified point in time. SSAE 16 and SOC 2 Type I Reports evaluate the design effectiveness of a service provider’s controls and then confirms that these controls have been placed in operation as of a specific date.
- SSAE 16 (SOC 1)and SOC 2 Type II Reports - A report on policies and procedures placed in operation and tests of operating effectiveness for a period of time. SSAE 16 and SOC 2 Type II Reports include the examination and confirmation steps involved in a Type I examination plus include an evaluation of the effectiveness of the controls for a period of at least six calendar months. Most user organizations require their service provider to undergo the Type II level examination for the greater level of assurance it provides.
About SSAE 16 Professionals
SSAE 16 Professionals is a leading provider that specializes solely in SSAE 16 readiness reviews, SSAE 16 Type I Reports, SSAE 16 Type II Reports, and other IT audit and compliance reports. Each of our professionals has over 10 years of relevant experience at “Big 4” and other large international or regional accounting firms. Each professional is certified as a CPA (Certified Public Accountant), CISA (Certified Information Systems Auditor), CIA (Certified Internal Auditor), CISSP (Certified Information Systems Security Professional), CRISC (Certified in Risk and Information Systems Control) and/or MBA (Master of Business Administration). For more information, please visit http://www.SSAE16Professionals.com.