What is Statements on Standards for Attestation Engagements 16 (SSAE 16)?

In January 2010, the American Institute of Certified Public Accountants (AICPA) Auditing Standards Board issued Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization, that is substantially similar to the international standard and supersedes Statement on Auditing Standards No. 70, Service Organizations (SAS 70). SSAE 16 has replaced the famous – SAS70 standard, that was in use by the Service Organizations for Reporting on Controls. The changes made in the new standard will help Service Organizations across the globe, and mainly to US based Organizations, in competing with other Organizations and offer best Services to their customers. New Standard SSAE 16 has emerged with these goals:

  • The new standard SSAE 16 to be in sync with other international accounting standards
  • How audits should be conducted for internal controls at Service Organizations
  • And, how Service Organizations can use these audit reports for their Customers, for compliance, marketing or other purposes.

Reporting in SSAE 16

There are two types of SSAE 16 Reports:

  • SSAE 16 Type I Reports
  • SSAE 16 Type II Reports

Reason for new standard i.e. SSAE 16

  • Changing Business Scenarios: In today’s world businesses has changed from local to global businesses spanning across multi nations. This change has transferred the old reports belonging to SAS 70 standard to relative obsolete ones, so a need for improved standard was felt to deal with the International Business Scenarios.
  • International Standard: As we know that SAS 70 was developed to be an US standard and was in use by many international organizations. But with the changing business requirements, need for a global standard was felt to cover the needs of the organizations outside the US.

More information on SSAE 16

For more details on SSAE 16, please visit following pages: