What is the purpose of ISAE 3402 report?
ISAE 3402 was developed to provide an international assurance standard for allowing public accountants to issue a report for use by user organizations and their auditors (user auditors) 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 …
What are control objectives in a SOC 1 report?
A key aspect of a SOC 1 audit report is the concept of control objectives. Control objectives are a series of statements that address how risk is going to be effectively mitigated. According to the PCAOB, “A control objective provides a specific target against which to evaluate the effectiveness of controls.
Who needs an ISAE 3402 report?
The ISAE 3402 is a control report developed for outsourcing activities that are related to the financial reporting of the client. ISAE 3402 is geared towards a client’s financial auditor’s needs.
What is the difference between SOC 1 and ISAE 3402?
ISAE 3402 is a third party (mainly suppliers) assurance mechanism in the form of SOC (Service Organisation Controls). There are three kinds of SOC reports: SOC1 report – Relates to assurance on controls that could impact financial statements. SOC2 report – Relates to assurance on IT controls.
What is a Type 2 controls report?
Type 2 – report on the fairness of the presentation of management’s description of the service organization’s system and the suitability of the design and operating effectiveness of the controls to achieve the related control objectives included in the description throughout a specified period.
What does ASAE 3402 stand for?
International Standard on Assurance Engagements 3402
International Standard on Assurance Engagements 3402 (ISAE 3402), titled Assurance Reports on Controls at a Service Organization, is an international assurance standard that describes Service Organization Control (SOC) engagements, which provides assurance to an organization’s customer that the service organization has …
What is the difference between ISAE 3402 and ISAE 3000?
The difference between ISAE 3402 and ISAE 3000 is that, whilst an ISAE 3402 report covers a service organisation’s internal controls that are most likely relevant to a user organisation’s internal control over financial reporting, the ISAE 3000 standard covers independent assurance engagements other than audits or …
What is the main purpose for the International Standard for Assurance Engagements 3000 ISAE 3000 )?
The purpose of this International Standard on Assurance Engagements (ISAE) is to establish basic principles and essential procedures for, and to provide guidance to, professional accountants in public practice (for purposes of this ISAE referred to as “practitioners”) for the performance of assurance engagements other …
What is a 3402 report?
International Standard on Assurance Engagements 3402 (ISAE 3402), titled Assurance Reports on Controls at a Service Organization, is an international assurance standard that describes Service Organization Control (SOC) engagements, which provides assurance to an organization’s customer that the service organization has …
What is a control objective?
A Control Objective is an assessment object that defines the risk categories for a Process or Sub-Process. Control Objectives define the COSO compliance categories that the Controls are intended to mitigate.
What are the control objectives include?
The control objectives include authorization, completeness, accuracy, validity, physical safeguards and security, error handling and segregation of duties.
What is the difference between ISAE 3402 and SSAE 16?
SSAE 16 requires the service auditor to adapt and apply U.S. auditing standards guidance when the service auditor uses members of the service organization’s internal audit function to provide direct assistance. ISAE 3402 does not provide for use of the internal audit function for direct assistance.