Q: Why is it important that I use a SSAE-16 Type II compliant payroll organization?
A: SSAE 16, also called Statement on Standards for Attestation Engagements 16, is a regulation created by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for redefining and updating how service companies report on compliance controls.
SSAE 16 replaced SAS 70 which was effective from April 1992 until June 2011.
How is it different?
SSAE 16 requires the management of the service company, such as Complete Payroll Processing, to provide documentation to the auditor that our services and any and all operational activities that affect the service's customers are in compliance.
So, why is it important for you to work with a SSAE 16 Type II compliant service provider?
Overall, SSAE-16 Type II certification can eliminate worry over an audit to your company.
- SSAE-16 Type II demonstrates that a service provider, such as CPP, has undergone an independent in-depth audit, including testing of the control activities over its payroll services. A Type II report not only includes the service organization’s description of controls, but also includes detailed testing of the service organization’s controls.
- SSAE-16 Type II continued endorsement helps provide credible proof that your businesses’ critical data is secure.
- SSAE-16 Type II is designated by the U.S. Securities and Exchange Commission (SEC) as an acceptable method for management to obtain assertions about service organization internal controls without conducting separate assessments.
For more information, call CPP at 888.237.5800 or visit our website.