Service Organizations: Reporting on Controls at a Service Organization Relevant to User Entities' Internal Control Over Financial Reporting Guide

This updated and improved guide is designed to help CPAs effectively perform service organization control (SOC) 1 engagements under Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization.

With the growth in business specialization, outsourcing to service organizations has become increasingly popular. This guide will help you:

• Gain a deeper understanding of Service Organization Control Guidance and common practice issues, giving you the foundational knowledge to effectively perform engagements.
• Provide best in class services related to planning, performing, and reporting on a service auditor's engagement.
• Successfully complete the transition from SAS No. 70, Service Organizations, to SSAE No. 16, Reporting on Controls at a Service Organization (issued in April 2010).
• Understand the kinds of information auditors of the financial statements of user entities need from a service auditor's report.
•Implement SSAE No. 16 requirement regarding obtaining a written assertion from management of a service organization by providing illustrative management assertion for a type 1 and type 2 report.
• Provide management representation letters and control objectives for various types of service organizations.

In addition, this guide contains over 20 illustrative service auditor's reports to help you with situations that may require modification of the report.

This guide has been fully conformed to reflect changes resulting from the clarified auditing standards.