In September, the Auditing Standards Board issued a proposed Statement on Standards for Attestation Engagements (SSAE) that would clarify the criteria for using internal auditors in a service auditor’s engagement. The SSAE would apply to examination engagements undertaken by a service auditor to report on controls at organizations providing services to user entities when those controls are likely to be relevant to user entities’ internal control over financial reporting, i.e., Service Organization Control (SOC) reports.
Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control over Financial Reporting: Clarification and Recodification would replace and supersede existing AT Section 801, originally issued in April 2010 as SSAE No. 16, Reporting on Controls at a Service Organization.
While the proposal’s effective date has not been determined, it’s anticipated the proposal will take effect no earlier than for reports for periods ending on or after December 15, 2016.
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