What is a SSAE 16 SOC 2 Audit Report?

SSAE-16 SOC 2 Type 2 stands for Standards of Attestations Engagement No. 16, System and Organizations Controls Report 2, Type 2. This AICPA-developed auditing report assesses how well organizations handle data security, system privacy, data confidentiality and data processing processes.

Is SSAE 16 the same as 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.

How do I get my SSAE 16 report?

SSAE 16 was formally issued in April 2010 and became effective on June 15, 2011. You can order a copy of SSAE 16 from the AICPA’s online store at http://www.cpa2biz.com – publication number 023035.

What is in a SSAE 16 report?

SSAE 16 is the Statements on Standards for Attestation Engagements no. 16. It provides a set of standards and guidance for attestation reporting on organizational controls and processes at service organizations. Audits using SSAE 16 generally result in System and Organizational Control (SOC 1) reports.

What is a SOC 1 Type 2 audit?

A SOC 1 report is for service organizations that impact or may impact their clients’ financial reporting. A Type 2 report has an audit period and provides evidence of how an organization operated its controls over a period of time.

What is a SOC 2 audit?

A SOC 2 audit report is designed to provide assurance to service organisations’ clients, management and user entities about the suitability and effectiveness of the service organisation’s controls that are relevant to security, availability, processing integrity, confidentiality and/or privacy.

What is a SOC 1 vs SOC 2?

A SOC 1 audit’s control objectives cover controls around processing and securing customer information, spanning both business and IT processes. A SOC 2 audit’s control objectives cover any combination of the five criteria. Readers and users of SOC 1 reports often include the customer’s management and external auditors.

Who needs a SSAE 16 audit?

Who Needs an SSAE 16 (SOC 1) Audit? If your Company (the ‘Service Organization’) performs outsourced services that affect the financial statements of another Company (the ‘User Organization’), you will more than likely be asked to provide an SSAE16 Type II Report, especially if the User Organization is publicly traded.

What is a SOC 2 Type 2 audit?

A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. These reports are issued by independent third party auditors covering the principles of Security, Availability, Confidentiality, and Privacy.

Who needs a SOC 2 audit?

Who needs a SOC 2 report? If you are a service provider or a service organization which stores, processes or transmits any kind of information you may need to have one if you want to be competitive in the market exactly like the decision to have an ISO 27001 certifications.

What does SOC Type 2 stand for?

Service Organization Control 2
Soc 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.

Do you need both SOC 1 and SOC 2?

If your company is publicly traded, for example, you will need to pursue SOC 1 as part of the Sarbanes-Oxley Act (SOX). SOC 2, on the other hand, is not required by any compliance framework, such as HIPAA or PCI-DSS.

Who needs a SOC 2 report?

A SOC ii compliance report is required if you are a data provider that processes or stores financial data. If you are considering outsourcing any type of data storage responsibilities, then you absolutely need a provider who is wholly compliant and secure.

What is a SSAE 16?

The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA), for redefining and updating how service companies report on compliance controls.

What are SOC 2 Type 2 reports?

System and Organization Controls (SOC) 2 Type 2 SOC 2 Type 2 overview. System and Organization Controls (SOC) for Service Organizations are internal control reports created by the American Institute of Certified Public Accountants (AICPA). Applicability Services in scope Microsoft 365 SOC 2 Type 2 compliance. Audit reports Frequently asked questions.

What is the SOC 2 trust services criteria?

A guide to the Trust Services Criteria Security. Availability. Confidentiality. Processing Integrity. Privacy. Example SOC 2 Scope – Recommendations per Industry: What trust service categories would we recommend including as a starting point for different types of companies?