Management and Regulations of SSAE 18 Audit in India

There is a new auditing standard that has been implemented, named SSAE 18, replacing previously in use standards like SSAE 16 and SAS 70. Of course, there can be major challenge for companies to integrate the new system in their routine work environment. 

SSAE stands for Statement on Standards for Attestation Engagements, developed by The American Institute of Certified Public Accountants (AICPA) and the Auditing Standards Board (ASB). According to AICPA Service Organization Control (SOC) reports are internal control reports regarding the services provided by a service organization, involving valuable information that users need to assess while addressing the risks associated with an outsourced service.

The above theory clarifies that SSAE is used to regulate how companies conduct their respective businesses and specifies how companies report on compliance controls. These reports are of SOC 1, SOC 2, and SOC 3.

Qadit, being a reliable provider of IT security solutions provides SSAE 18Audit in India that involves one of the most effective ways of communicating information that service organizations do about its controls to user entities through Service Auditor’s Report. There are two types of Service Auditor’s Reports:

1.      Type 1 and Type 2: SOC 1: These reports are furnished by the service organizations, related to the activities and procedure undertaken that have the potential to directly impact a client’s financials.  

2.      Soc-2:  This report evaluates the business information system relating to security, availability, processing integrity, confidentiality, and privacy.

3.      Soc-3: These reports can be used for public distribution for example display on website etc.

SSAE 18 certification in India audit report ensures the service organization to provide its customers for implementation of a formal Third Party Vendor Management Program and Annual Risk Assessment process.  The SSAE 18 update’s main purpose is to clarify certain old standards and streamline and simplify the review process. This update is demanding from companies more control and responsibility with the people they work with, particularly with third-party vendors. The changes do not seem to be so difficult to deal with, but these changes are for better control.