Learn about 7 Critical Points on Service Organization Control (SOC) Reports.
Santa Monica, CA (PRWEB) January 29, 2013
SSAE 16 reporting is becoming a strict requirement for organizations providing critical outsourcing services to other businesses. And the SSAE 16 reporting standard has quickly become the global de facto reporting option, thus it’s important that service organizations take note of the following 7 critical points regarding the AICPA SOC framework:
1. A new standard emerges - SSAE 16 effectively replaced SAS 70 for reporting periods ending on or after June 15, 2011. Learn about the emergence of SSAE 16 and what it means for service organizations.
2. SOC Framework - The AICPA Service Organization Control (SOC) framework represents a true transformation in reporting on controls at service organizations. Learn about SOC 1, SOC 2, and SOC 3 compliance.
3. SOC 2 reporting - Even though SOC 1 SSAE 16 reporting has garnered the lion share of attention, the SOC 2 reporting framework is quickly gaining ground. Learn more about SOC 2 compliance, along with the much talked about SOC 1 vs. SOC 2 debate.
4. Subservice organization reporting - Organizations that provide outsourcing services to an actual service organization ar known as a "subservice organization" in the world of SSAE 16, and there are important scope consideration and requirements to learn about.
5. SSAE 16 Type 1 vs. Type 2 - SSAE 16 Type 1 reports are a point in time, while SSAE 16 Type 2 reports cover a reporting period, also known as a test period.
6. Management responsibilities - Service organizations are required to provide a description of their "system", along with a written statement of assertion for purposes of SSAE 16 compliance.
7. Audit Scope and Cost Considerations - Understanding the scope of an SSAE 16 assessment - which can vary greatly - is extremely important as it impacts pricing and other engagement considerations.
Contact Christopher G. Nickell, CPA, at 1-800-277-5415, ext. 706, to learn more about NDB's competitive, fixed-fees for SOC 1 SSAE 16, SOC 2, and SOC 3 compliance. Additionally, visit the official SSAE 16 Resource Guide, developed exclusively by NDB.