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Exposure Draft for Proposed SSAE on Internal Controls Issued

An exposure draft on proposed Statement on Standards for Attestation Agreements (SSAE), Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting: Clarification and Recodification has been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”). Issued as part of the Board’s clarity drafting project, the proposed SSAE will replace AT section 801, Reporting on Controls at a Service Organization, and relate to a service auditor’s examination engagements when reporting on controls at organizations that offer services to user entities when such controls could apply to user entities’ internal control over financial reporting. Also, the exposure draft includes the mapping document, Mapping of Paragraphs in Extant AT Section 801, Reporting on Controls at a Service Organization, to the Proposed Clarified Attestation Standards.

Comments on the exposure draft are due by December 18th. While the AICPA has not yet announced the proposed SSAE’s effective date, the organization expects it would apply to reports for periods that end on or after December 15, 2016. To view the exposure draft and mapping document, please visit the AICPA site.

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