Pension Administration Companies and the Need for a SSAE 16 (SOC 1) or SOC 2 Audit Report in Today’s Competitive Market
In an increasingly competitive business environment, SSAE 16 (SOC 1) and SOC 2 Audits are providing pension administration companies a competitive advantage. SSAE 16 Professionals, LLP has assembled top tier talent whose sole focus is on helping pension administration companies undergo the SSAE 16 (SOC 1) or SOC 2 audit.
Irvine, CA (PRWEB) October 15, 2012
SSAE 16 Professionals has unveiled a specialty service line focusing on SSAE 16 (SOC 1) and SOC 2 reports for pension administration companies. Pension administrators perform various types of yearly service on an organizational retirement plan, such as a 401(k), profit sharing plan, defined benefit plan, or cash balance plan. Increasingly, technology is playing a growing role in the pension administration business. For example, many complicated actuarial calculations and statistical tests previously undertaken by hand are now managed through software applications. Many business management tools are also now available to provide for workflow management and efficient client communication. Additionally, many activities that required mailing physical documents are now performed electronically through secure web connection. With pension administration being such an important and complex function, many organizations will not even consider contracting with a pension administrator if they do not have a SSAE 16. The SSAE 16 audit provides transparency into the pension administrators´ internal controls.
“Pension administration companies are choosing SSAE 16 Professionals to perform their SSAE 16 or SOC 2 audit because of our personalized approach,” says Jim Jimenez, Managing Partner at SSAE 16 Professionals. “We have a unique blend of expertise coupled with good old fashioned client service.”
SSAE 16 audit reports, also known as SOC 1 Reports, which have effectively replaced SAS 70 reports, will be prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. SOC 1 audit reports retain the original purpose of SAS 70 by providing a means of reporting on the system of internal control for purposes of complying with internal control over financial reporting.
In the past, SAS 70 reports encompassed financial reporting controls, operational controls, and compliance controls. SSAE 16 SOC 1 reports can no longer be used for any other purpose except for reporting on the system of internal control for purposes of complying with internal control over financial reporting. For reports that are not specifically focused on internal controls over financial reporting, the AICPA has issued an interpretation under AT Section 101 permitting service auditors to issue reports. These reports will now be considered SOC 2 audit reports. SOC 2 reports will focus on controls at a service organization relevant to one or more of the following Trust Services principles: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
SSAE 16 (SOC 1) & SOC 2 Type I and Type II Audit Reports
- SSAE 16 and SOC 2 Type I Reports – A report on policies and procedures placed in operation as of a specified point in time. SSAE 16 and SOC 2 Type I Reports evaluate the design effectiveness of a service provider´s controls and then confirms that these controls have been placed in operation as of a specific date.
- SSAE 16 and SOC 2 Type II Reports – A report on policies and procedures placed in operation and tests of operating effectiveness for a period of time. SSAE 16 and SOC 2 Type II Reports include the examination and confirmation steps involved in a Type I examination plus include an evaluation of the effectiveness of the controls for a period of at least six calendar months. Most user organizations require their service provider to undergo the Type II level examination for the greater level of assurance it provides.
About SSAE 16 Professionals
SSAE 16 Professionals, LLP is a leading PCAOB registered accounting firm that specializes in SSAE 16 (SOC 1) and SOC 2 audits, SSAE 16 (SOC 1) and SOC 2 readiness reviews, and other IT audit and compliance reports. Each of our professionals has over 10 years of relevant experience at “Big 4” and other large international or regional accounting firms. Each professional is certified as a CPA (Certified Public Accountant), CISA (Certified Information Systems Auditor), CIA (Certified Internal Auditor), CISSP (Certified Information Systems Security Professional), CRISC (Certified in Risk and Information Systems Control) and/or MBA (Master of Business Administration). For more information, please visit http://www.SSAE16Professionals.com.
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