On September 18, the AICPA issued an exposure draft for the proposed Statement on Standards for Attestation Engagements (SSAE)“Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting: Clarification and Recodification.” The proposed SSAE would supersede AT Section 801, Reporting on Controls at a Service Organization, of Statements on Standards for Attestation Engagements [AICPA, Professional Standards]. While the effective date has not been finalized, the earliest effective date being considered is for report periods ending on or after December 15, 2016.
The proposed changes to AT 801 have been drafted to align it with chapters 1-4 of the Auditing Standards Board’s most recent version of the exposure draft of “Attestation Standards: Clarification and Recodification,” to provide additional guidance and language from the most recent AICPA SOC 1 Guide and to provide clarity surrounding challenges and issues that auditors have encountered when conducting SOC examinations. The exposure draft provides a summary of the proposed changes, highlights of which include:
- Introduction of the term “complementary subservice organization controls”;
- Revision of the definition of complementary user entity controls;
- Requirements for service auditors with respect to the work of the internal audit function and regulatory examinations that relate to services provided by the service organization and the scope of the SOC examination;
- Requirements for service auditors with respect to performing risk assessments;
- Addition of application guidance relative to examples of information evaluated by service auditors and language that the service auditor may add to the description of tests of control effectiveness regarding verification of completeness and accuracy of information provided by the service organization.
The AICPA also released a mapping document with the exposure draft to summarize changes to the proposed standard and identify where language from the superseded standard resides within the proposed AT 801 and/or the clarified attestation standards.
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