CSAE 3416 / SOC Reports
Canadian Standard on Assurance Engagements (CSAE 3416) or popularly known as Service Organization Control (SOC 1) report, addresses audit engagements undertaken by a service auditor to report on controls at organizations that provide services to user entities when those controls are likely to be relevant to user entities’ internal control over financial reporting.
Service Organization Control (SOC 2) report based on AICPA and CPA Canada Trust Services Principles, provides assurance on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality or Privacy.
CSAE 3416 / SOC 1 / SOC 2 / SOC 3 report allows user auditors to place reliance on the work of an independent auditor for outsourced services thereby reducing the amount of audit testing of the internal controls at the service organization. There are many other benefits of performing the engagement:
- Competitive advantage – To meet or exceed contractual requirements thereby giving your organization a competitive advantage in the market place
- Revenue growth – Improved client confidence of security over sensitive information will help draw more customers to your organization
- Reducing cost – You achieve this by standardizing processes with the help of optimized controls
- Scalability – Easier to grow and service more clients at the same time with the help of standardized controls and processes