We are SSAE 16 and ISAE 3402 Compliant

WHAT ARE SSAE 16 AND ISAE 3402 STANDARDS?

SSAE 16 and ISAE 3402 are standards for reporting on controls at service organizations. Effective June 15, 2011, SSAE 16 effectively replaced the well-recognized SAS 70 auditing standard issued by the American Institute of Certified Public Accountants (AICPA), further aligning the new U.S. standard with the international standard (ISAE 3402) and other region-specific standards which have become the dominant platforms for reporting on controls at service organizations.

HOW IS THE SSAE 16 STANDARD DIFFERENT FROM SAS 70?

The SAS 70 auditing standard only called for a description of “controls,” while the SSAE 16 attest standard now requires a description of its “system,” which is considered to be more comprehensive and expansive than that of the SAS 70 description of “controls.”

In addition, it requires a written statement of assertion, which was not required under SAS 70 Type I or Type II audits. This written statement of assertion must be crafted by management and contain a number of essential clauses for which management of the service organization will effectively “attest.” This written statement of assertion can be included within or attached to the description of the “system.” A Type I report addresses the design of the controls while a Type II report addresses both the design and operating effectiveness.

ABOUT THE ISAE 3402 STANDARD

International Standard on Assurance Engagements (ISAE) No. 3402, Assurance Reports on Controls at a Service Organization, was issued in December 2009 by the International Auditing and Assurance Standards Board (IAASB), which is part of the International Federation of Accountants (IFAC). ISAE 3402 was developed to provide an international assurance standard for allowing public accountants to issue a report on the controls at a service organization that are likely to impact or be a part of the user organization’s system of internal control over financial reporting.

WHAT CLEARPOINTE SSAE 16 TYPE II AND ISAE 3402 COMPLIANCE MEANS TO OUR CUSTOMERS

SSAE 16 Type II and ISAE 3402 compliance provides ClearPointe customers with a level of assurance about our corporate controls. It replaces our existing SAS 70 Type II audit report. Brown Smith Wallace LLC conducted the ClearPointe SSAE 16 and ISAE 3402 audits over the twelve-month period ending April 30, 2012.