Certificate - SSAE 18

  • Home
  • SSAE 18 Certificate

Risk Management

ISO 27001 ISO 9001 ISO 22301 ISO 20000-1 ISO 31000 ISO 38000 ISO 29100 ISO 27017 ISO 27018 ISO 27100 TL 9001 SSAE 18 Cyber Security NIST Security Framework HIPAA SOX 404 ITGC COBIT NIST Security Framework PCI DSS:4.0 GDPR DP Audits
COSO

Overview of SSAE 18

SSAE 18, or the Statement on Standards for Attestation Engagements No. 18, is an auditing standard issued by the American Institute of Certified Public Accountants (AICPA). It primarily addresses the requirements for attestation engagements related to controls at service organizations. This standard is crucial for organizations that use third-party service providers, as it provides a framework for evaluating the effectiveness of controls and managing associated risks.

SSAE 18 is an update to SSAE 16 and became effective on May 1, 2017. It enhances the standards for reporting on controls at service organizations, focusing on improving the quality and relevance of the reports issued. It is particularly relevant for organizations undergoing audits related to their use of service organizations, such as cloud service providers, data centers, and other outsourced service providers.

Key Components of SSAE 18

1. Service Organization Control (SOC) Reports:

  • SOC 1: Reports on controls relevant to financial reporting, intended for user entities and their auditors.
  • SOC 2: Reports on controls related to privacy, confidentiality, processing integrity, availability, and security, useful for a broader audience.
  • SOC 3: A summary report similar to SOC 2, intended for general public distribution, demonstrating compliance with the trust services criteria.

2. Control Objectives and Related Controls:

SSAE 18 emphasizes defining control objectives and implementing controls to meet these objectives, ensuring effectiveness and alignment with agreed-upon goals.

3. Risk Assessment and Management:

Service organizations must perform thorough risk assessments to identify and address risks related to their control environment, including financial reporting and operational performance risks.

4. Third-Party Oversight:

SSAE 18 requires effective management and oversight of third-party vendors, ensuring that their controls are in place and functioning as intended.

5. Documentation and Evidence:

Proper documentation and evidence collection are crucial for demonstrating the effectiveness of controls, necessitating comprehensive records to support the attestation report.

Implementation of SSAE 18

  1. Understand SSAE 18 Requirements: Familiarize yourself with the requirements and guidance to ensure compliance.
  2. Evaluate Current Controls: Assess existing controls against SSAE 18 requirements, identifying gaps or areas for improvement.
  3. Engage with a Qualified Auditor: Work with an experienced auditor to conduct an examination and provide an attestation report.
  4. Prepare for the Audit: Gather and organize documentation related to controls, processes, and risk management practices.
  5. Implement and Test Controls: Make necessary changes to controls and conduct testing to ensure effectiveness.
  6. Address Findings and Recommendations: Review and promptly address the auditor’s findings to improve the control environment.
  7. Report and Communicate: Communicate the results of the attestation report to stakeholders, demonstrating commitment to effective risk management.
  8. Continuous Improvement: Regularly review and update controls and risk management practices to ensure ongoing compliance.
Service 1
Service 2

Benefits of SSAE 18 Compliance

  • Enhanced Credibility: Demonstrates to stakeholders that your organization has effective controls in place.
  • Improved Risk Management: Helps identify and mitigate risks associated with service organizations.
  • Increased Trust: Provides assurance to customers and partners regarding the reliability of your controls and processes.
  • Regulatory Compliance: Supports compliance with regulatory and industry requirements related to control environments.

Conclusion

By adhering to SSAE 18, organizations can better manage risks associated with third-party service providers and ensure that their control environments meet the necessary standards for effective governance and risk management.