What is SSAE 16 Hosting – Overview and Guidance

SSAE is Statement on Standards for Attestation Engagements No.16 which are the set of standards and guidelines which were published by Auditing Standards Board of American Insitute of Certified Public Accountants (AICPA), that gives steps for providing service companies to report on compliance.

The SSAE16 was launched in April 2010 that provides a complete reporting standard format for all service reports that was launched to replace the Statement on Auditing Standards No.70 (SAS 70), the SSAE 16 was redefined by making an updated standard that made SSAE 18 on May 1, 2017.

Using the SSAE 16 auditors produce two different audit reports: the first one is a snapshot that delivers exact status of the organization on a particular day, and the second provides data control over the time that has changed over the interval of time.

The SSAE 16 provides the procedure of controls, security control for the organizations like data centers, Internet service providers, and incorporate information security controls, that help to have security compliance to run the organization.

The SSAE 16 provides the company with the written assertion by the auditor that describes accurate details about the organization, it also describes the services, objectives and operational activities that are delivered by the organization.

SSAE 16 Requirements

The SSAE 16 requires verification for design and operation through two types of audits. Type 1 audit provides an accurate description by the auditors about the service provider’s description and assertion, the second type is a combination of the first type and implements it with effective control for the specific time.

They provide accurate information about the company to the clients, the certification is delivered after proper internal audit which is related to financial reporting.

SSAE 16 Report

The report contains a detailed framework that is examined about the organization and is delivered in three Service Organisation Control (SOC) reports.

The SOC 1 contains details that are useful for auditors and office controllers, SOC 2 covers the security report, integrity processing, privacy, confidentiality, and availability that are used by regulators, and management and it is disclosed under the section nondisclosure agreement (NDA).

The SOC 3 is similar to SOC 2 but the details are made easily available for the public.

SSAE 16 Certification

Depending on the goal of the company the SSAE 16 differs. When an organization runs data center then SSAE 16 certification is not required since they provide resources under the product development category.

When it comes to customers then SSAE 16 is required, since the certification creates confidentiality about the organization and believes the data are preserved with highly secured concern.

The SSAE 16 certification holds some set of standards and focuses on the business requirement for customers. Hence you to get SSAE 16 certification to provide customers a detailed review and benefit of compliance guidelines.

SSAE 16 vs. SSAE 18

The SSAE 18 provides new standards that address more clearly the concerns, length, and complexity of the existing AICPA standards.

SSAE 18 combines many standards and is differs from SSAE 16, it gives a complete baseline and guidelines for the auditors to prepare reports and review them.

Most of the auditors follow SSAE 18 which provides accurate details about the concern. It specifies the requirement of monitoring controls at subservice organizations to know the evaluation process.

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