Service organization control soc reports isae 3402. Service auditors are required to follow the iaasbs standards for fieldwork, quality control, and reporting isae 3000. The audit was conducted in accordance with ssae 16 and isae 3402 standards. For companies that require certification according to us auditing standards, we prepare for certification according to the new auditing standard ssae 18, which replaced the ssae 16 standard. A material briefing on the key differences with ssae 16 and isae 3402, coupled with best practices for reporting, will fortify your service client work. This is because of the idea that when controls are sampled, they are not necessarily representative of the. The isae 3402, also known as a control report, is issued by the international. Isae 3402 standard will remain the most widely employed approach to demonstrate thirdparty assurance, providing coverage to users of outsourced services.
The isae 3402 standard, is an international recognized auditing standard issued by the international auditing and assurance standards board iaasb. Responsibilities of a service organisation 9 the role of a service organisation 27. An engagement that is performed in accordance with both sets of standards would not be expected to. Isae 3402 49 assurance reports on controls at a service organisation and a proforma report. Present a complete and accurate description of the internal control framework. Disclaimer of opinion if management does not provide the service auditor with certain written representations, paragraph 40 of isae 3402 requires the service auditor, after discussing the matter with management, to disclaim an opinion.
Service auditors are required to follow the iaasbs standards for fieldwork, quality control, and reporting. Isae 3402 is a third party mainly suppliers assurance mechanism in the form of soc service organisation controls. To obtain an isae 3402 type ii qualification, globalcollect has defined specific control objectives in order to meet the requirements for processing all payment products within its portfolio. Reporting on controls at service organizations get cost efficiencies when a user entity has no information. In an isae 3402 soc1 report, organizations define their own control objectives and controls and align these with customers needs. Security audits sas70 ssae16 isae3402 outsourcing law. A service organizations auditors examination performed in accordance with isae 3402 is widely recognized, because it represents an indepth audit of a service organizations control objectives and control activities, which often include controls over information technology and related processes. For service organizations with international operations or international clients, there may be a benefit to obtaining a report indicating that the examination was performed in accordance with aicpa and iaasb standards. Frequently asked questions about sas 70 versus ssae 18 and ssae 16. Isae 3402, assurance reports on controls at a service organization. Jul 07, 2014 jsc consultant solutions ltd was founded by henrik schouboe. Michael nugent august 2007 page 1 of 4 service organizations isae 3402 objectives of agenda item 1. International standard on assurance engagements 3402 isae 3402, titled assurance reports on controls at a service organization, is an international assurance standard that prescribes service organization control soc reports, which gives assurance to an organisations customers and service users that the service organisation has adequate internal controls.
Control objectives, related controls and consideration of risks to achieve. Isae 3402 independent service auditors assurance report on it general controls relating to financial reporting for itadels hosting services. Description of internal controls and control objectives. The audit report is available to enterprise agreement volume licensing customers under a nondisclosure agreement. Service organizations cover memorandum september 2007 iaasb agenda item 10 prepared by. Iso 27001 certification vs isae 3402 soc 2 assurance report. We will issue an isae 3402 report and a management letter containing findings and recommendations. Service organization control report achtergrond isae 3402 veelgestelde vragen isae 3000 soc 2 iso 27001 iso 9001. Type 1 report on the fairness of the presentation of managements description of the service organizations system and the suitability of the design of the controls to achieve the related control objectives included in the description as of a specified date. Soc 1 reports conclude about fairness of presentation of managements description of service organizations system and suitability of design and effectiveness of the controls to achieve the related control objectives over a. A smooth transition to the ssae 16 isae 3402 regime depends on grasping the new rules and leveraging the existing sas 70 reporting process. A smooth transition to the ssae 16isae 3402 regime depends on grasping the new rules and leveraging the existing sas 70 reporting process.
Oct 29, 2010 the new ssae 16 isae 3402 attest model will challenge enterprise customers to become more familiar with security, bcp, drp and other core control issues directly. Isae 3402 does not specify a predetermined set of control objectives or control activities that service organizations must achieve. The new ssae 16 isae 3402 attest model will challenge enterprise customers to become more familiar with security, bcp, drp and other core control issues directly. Isae 3402 what it is and what it isnt global advisory. The underlying control objectives are defined by the service provider and vary depending on type of service provided. Isae 3402 soc 1 type 2 reports relate solely to controls at a service organization that impact the user entitys internal controls over financial reporting. Iso 27001 vs isae 3402 jsc consultant solutions ltd. Service organizations receive significant value from having a isae 3402 engagement performed. A service organization has five primary responsibilities under the isae 3402 standard. The task force was asked to consider whether further explanation of the relationship between risks, control objectives and criteria should be added to isae 3402. An isae 3000 report generally consists of a description of the scope, the norm against which the report is tested, a description of the control framework and a detailed description of the risk management system and a control matrix consisting of the risks, the related control objectives and the related controls. Ssae 16 terminology controls at a service organization. Regular independent audits of these controls and processes are performed in accordance with established and recognized standards, including the international standard on assurance engagements isae 3402 assurance reports on controls at a service organization issued by the international auditing and assurance standards board andor where applicable, statements on standards for. Enterprise customers can thus begin to prepare a checklist for deal documentation, including both attest assessment reports and functionspecific documentation that the.
Isae 3402 was developed to provide an international assurance standard for allowing public accountants to issue a report for use by user organizations and their auditors user auditors on the controls at a service organization that are likely to impact or be a part of the user organizations system of internal control over financial reporting. The difference lies in the methodology of the achievement of control objective. There are no detailed prescriptive guidelines for an isae 3402 report. Proposed isae 3402 first read iaasb main agenda september 2007 page 20072845 agenda item 10a page 3 of 34 i a description of the system, control objectives and related controls prepared by. Windows azure now publishes a detailed soc 1 type 2 report for the core features. Assurance reports on controls at a service organization 5 sae 3402 control objectives stated in the service organizations description of its system were achieved throughout the specified period.
The content and scope of the isae 3402 are determined by the service organisation. In a soc 1 audit control objectives, which are used to accurately. However, while the two standards are essentially the same, there are nine very specific differences or deviations between ssae 16 and isae 3402. International standards for assurance engagements isae no. The itgcs, operational controls and financial controls are in scope of the. A service organizations auditors examination is widely accepted, because it represents an indepth audit of a service organizations control objectives. The isae 3402 standard require that management of the service organisation provide a written assertion attesting to the fair presentation and design of controls in a type 1 report or the fair presentation, design, and operating effectiveness of controls in a type 2 report.
Isae 3000 provides generic guidance on the principal aspects of assurance. Isae 3402 reporting, in coordination with your internal control assessment activities, can help. Isae 3402 type 2 independent auditors report on general it controls regarding operating and hosting services for 01. Regular independent audits of these controls and processes are performed in accordance with established and recognized standards, including the international standard on assurance engagements isae 3402 assurance reports on controls at a service organization issued by the international auditing and assurance standards board andor where applicable, statements on standards for attestation. Isae 3402 does not include this requirement as a condition of engagement acceptance and continuance. Auditors description of control objectives, security measures, tests and findings 22.
The isae 3402 standard require that management of the service organisation provide a written assertion attesting to the fair presentation and design of controls in a type 1 report or the fair presentation, design, and operating effectiveness of. Jun, 2012 windows azure now publishes a detailed soc 1 type 2 report for the core features. A management assertion and an auditors opinion on whether the controls are appropriately designed to meet the control objectives. Service organizations isae 3402 objectives of agenda item 1. Ssae 16 and isae 3402 are generally the same set of standards, and those reports issued under ssae 16 will now be more acceptable by the global community. The framework defines the elements of assurance engagements and describes objectives for such engagements. Jsc consultant solutions ltd was founded by henrik schouboe. Isae 3402 ssae 16 examinations deloitte united states. Isae 3402 accreditation assurance standard compliancenow. The scope of an isae 3402 is typically all operational and financial controls that. We conducted our engagement in accordance with international standard on assurance engagements 3402, assurance reports on controls at a service organization, issued by the international auditing and assurance standards board. Control objectives relate to risks that controls seek to mitigate. This isae 3402 type 2 report includes sentia denmark as cvr.
Soc1 report relates to assurance on controls that could impact financial statements. The controls related to the control objectives stated in the accompanying description were suitably designed and operated effectively throughout the period from 1 january to 31 december 2016. Singapore standard on assurance engagements 3402 assurance reports on controls at a service organization effective for service auditors assurance reports covering periods ending on or after 15 june 2012 contents paragraph foreword introduction scope of this ssae 16 effective date 7 objectives 8 definitions 9 requirements ssae 3000 10. A control matrix consists of the control objectives, the related controls and the outcomes of test procedures on the controls. On assurance engagements ssae 3402 singapore standard on assurance engagements assurance reports on controls at a service organization. Soc2 could make the audit criteria for a particular control more. A type i report describes the service organizations description of controls at a. Management can use isae 3402 soc 1 reports to provide employees with key information about the organization and how transactions are processed as well as providing with a better understanding of the global objectives of the business and foster control discipline across organization over control environment soundness. A type 2 reports contain the same information as a type 1, while adding in the opinion of the effectiveness of the controls, as related to the control objectives, as well as descriptions and results of the auditors tests over a period of time. Engagements isae 3402 provides the service organization with a mechanism. The isae 3402 is a control report developed for outsourcing activities that are related to the financial reporting of the client. A service organizations auditors examination is widely accepted, because it represents an indepth audit of a service organizations control objectives and activities.
International standard on assurance engagements 3402 isae 3402, titled assurance reports on controls at a service organization, is an international. Service organisation control reports are reports on the internal control structure for organisations that provide transaction processing services. In an isae 3000 soc 2 the test of the controls on operational effectiveness by the service auditor is also included. Process and control requirements set by regulatory bodies such as the fsa.
Identify the risks that threaten achievement of the control objectives. A service auditors report with an unqualified opinion that is issued by an independent accounting firm differentiates the service organization from its peers by demonstrating the establishment of effectively designed control objectives and control activities. International standard on assurance engagements isae no. Frequently asked questions about sas 70 versus ssae 18 and. Isae 3402 reinforcing confidence through demonstration of effective controls overview of service organisation control reports service organisation control reports are reports on the internal control structure for organisations that provide transaction processing services. Service organization control soc 1 resilience and ciip. Use of these reports is restricted to the management of the service. Process and control objectives agreed between the service and user organisations. Isae 3000 revised internal controls over financial reporting. Controls at a service organization refer to the controls that are in place at your company many of these controls should be covered within your policies and procedures, as they should reflect an accurate depiction of the various processes that occur within your organization. Isae 3402 and ssae 16 defined one reason for the change is that prior to the iaasbs development of international standard on assurance engagements 3402 isae 3402, there was no global standard for engagements to report on controls at a service organisation.
Process and control objectives set by professional bodies, eg, icaew aaf 0106 on investment operations. Isae 3402 contains a requirement that allows a service auditor to conclude that a deviation that is identified when testing a sample of the control can be considered an anomaly. It replaced sas 70 and was designed to closely mirror international standard on assurance engagements 3402 isae 3402. For the first time, a global assurance standard for reporting on controls at a service organization now exists. Globalcollect is isae 3402 type ii compliant for processing all payment products. By comparing the control objectives and activities reported by the service organization to those contained in the framework, the users can. This is because of the idea that when controls are sampled, they are not necessarily representative of the entire population from the samples drawn. Members attention is also drawn to isae 3000, paragraphs 4 and 6. Identify your companys most businesscritical, processbased relationships. Isae 34023000 controlsaudits and itsm it service management. Useful to report on agreedupon security requirements. Isae 3402 is an internationally recognized auditing standard for internal control systems ics.
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