SSAE 18 Audit
SSAE 18, which stands for Statement on Standards for Attestation Engagements No. 18, is a crucial auditing standard in the financial world. Implemented in 2017, SSAE 18 replaced its predecessor, SSAE 16, bringing about significant changes in how service organizations are audited.
What is SSAE 18?
SSAE 18, or Statement on Standards for Attestation Engagements No. 18, marks a significant advancement in audit protocols. Issued by the American Institute of Certified Public Accountants (AICPA), this standard replaces SSAE 16 and transforms service organization control (SOC) reporting practices.
SSAE 18 introduces a more stringent approach to attestation engagements, with a focus on risk assessment and control evaluation. It requires a thorough examination of an organization's internal control framework, ensuring a more comprehensive and reliable audit process.
This standard applies to various attestation engagements, including SOC 1, SOC 2, and SOC 3 reports. It raises the bar for service auditors, requiring a deeper analysis of an organization's control environment and risk management practices.
Key changes from SSAE 16
The shift from SSAE 16 to SSAE 18 introduced several crucial modifications:
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Enhanced risk assessment: SSAE 18 places greater emphasis on identifying and assessing risks of material misstatement.
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Subservice organizations: It imposes stricter requirements for evaluating and reporting on subservice organizations.
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Complementary user entity controls: The standard necessitates clearer identification and description of these controls.
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Monitoring activities: SSAE 18 demands a more detailed examination of the service organization's monitoring activities.
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Engagement acceptance and continuance: It establishes more rigorous criteria for accepting and continuing attestation engagements.
These changes aim to enhance the quality and reliability of SOC reports, providing stakeholders with more comprehensive and actionable insights.
Benefits of SSAE 18 compliance
Adhering to SSAE 18 offers numerous advantages. It demonstrates a commitment to maintaining robust internal controls, enhancing an organization's credibility. Compliance helps identify and mitigate potential risks more effectively, improving overall risk management.
SSAE 18 compliance provides stakeholders with more detailed insights into the organization's control environment, increasing transparency. It can serve as a competitive advantage, differentiating an organization in a crowded marketplace.
Moreover, compliance facilitates better alignment with international standards, aiding in meeting global regulatory requirements. It can potentially streamline audits, reducing the need for multiple audits by different clients.
Ultimately, compliance with SSAE 18 not only satisfies regulatory requirements but also fosters trust and confidence among clients and partners.
Why choose us?
ITGRC Advisory Ltd stands out as an ideal partner for SSAE 18 audits. Our team possesses extensive experience in conducting SOC audits across various industries. We employ a holistic methodology that goes beyond mere compliance, focusing on adding value to your organization.
Our services are customized to meet specific needs and industry requirements. Our auditors hold numerous certifications, including CISA, CISM, and CRISC, ensuring high-quality service.
With offices in the UK and Poland, we bring an international perspective to your audit. We prioritize clear communication and collaboration throughout the audit process, maintaining a client-centric focus.
Stay in touch
ITGRC ADVISORY LTD.
590 Kingston Road, London,
United Kingdom, SW20 8DN
company number: 12435469