SSAE 18, or Statement on Standards for Attestation Engagements No. 18, is a regulation established by the American Institute of Certified Public Accountants (AICPA) that governs how service organizations report on their controls and processes. It replaced the previous standard, SSAE 16, in order to align with international standards and better address the needs of users of service organization reports.
Under SSAE 18, service organizations are required to provide a description of their system and controls, as well as a written assertion from management regarding the effectiveness of those controls. Additionally, service auditors are required to provide an opinion on the fairness of the service organization's description of its system and controls, as well as the suitability of the design and operating effectiveness of those controls.
Overall, SSAE 18 aims to enhance the quality and transparency of service organization reports, providing users with greater confidence in the accuracy and reliability of the information provided by service organizations. Compliance with SSAE 18 is essential for service organizations seeking to demonstrate their commitment to maintaining strong internal controls and meeting the needs of their customers.
A company that provides outsourced payroll processing services to other businesses would undergo an SSAE 18 audit to demonstrate the effectiveness of their internal controls and security measures. This audit would provide assurance to their clients that their payroll data is being handled in a secure and accurate manner, in compliance with industry standards. The company could use the SSAE 18 report as a marketing tool to attract new clients and retain existing ones.
What’s involved with SSAE 18 compliance?
1. Questionnaire Generation: Automatically generate tailored questionnaires based on factors such as industry, compliance requirements, and the specific needs of the organization. For example, creating specific questionnaires for different departments or vendors based on their roles and responsibilities.
2. Distribution: Automatically distribute questionnaires to relevant stakeholders, including employees, vendors, and partners, via email or through integrated platforms. For example, sending out questionnaires to all employees at once or scheduling distribution to specific groups at different times.
3. Reminder and Follow-up: Send automated reminders to participants who have not completed or submitted their security questionnaires within a specified timeframe. For example, sending reminder emails to participants who have not completed the questionnaire within a week of distribution.
4. Response Collection: Automatically collect and consolidate responses from participants into a centralized database or platform for analysis. For example, gathering all responses in a secure online platform for easy access and review.
5. Scoring and Analysis: Utilize AI algorithms to analyze responses, score questionnaire submissions, identify potential risks or gaps, and generate reports highlighting areas that need attention. For example, using AI to flag responses that indicate potential compliance issues or security vulnerabilities.
What to look for in a SSAE 18 compliance tool
Look for software that automates repetitive tasks, such as generating questionnaires, distributing them, collecting responses, and sending reminders.
This reduces manual effort and speeds up the process. Software with AI capabilities can recommend answers from a well-maintained content library, validate responses, and analyze risks or gaps. This ensures accuracy and streamlines the review process.
Acquire tools that empower field teams to proactively share up-to-date security and compliance information via profiles or trust centers Integration with your existing tech stack, including CRMs, cloud storage, Microsoft Office, and collaboration tools like Slack or Teams.
A centralized content library or knowledge base that stores accurate, reusable answers helps streamline responses and ensures consistency in addressing compliance requirements.
Opt for software that supports team collaboration with features like task assignments, workload visibility, in-app comments, and e-signature collection. This ensures everyone stays aligned and projects move smoothly.
Detailed reports highlighting key findings, compliance status, and areas for improvement. An audit trail is also essential for regulatory compliance and internal tracking.
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A lot of the tasks above can be automated with the right software. See how Responsive brings your teams and content together to produce standout responses that seal deals with speed.