ADVANTAGE TO THE COLLECTIONS INDUSTRY – AGENCIES, ATTORNEYS, VENDORS, CREDITORS AND ASSET BUYERS
The AICPA’s Statement on Standards for Attestation Engagements No. 16 (SSAE 16), Reporting on Controls at a Service Organization was issued in April 2010. As of June 15, 2011, the SSAE 16 effectively replaces the long standing SAS 70 as the U.S. standard for reporting on a service organization's internal controls. SSAE 16 is also referred to as Service Organization Control (SOC) Reporting 1. The focus of SSAE 16 is on controls at a service organization likely to be relevant to user entities’ internal control over financial reporting. The SAS 70 has been used as the de facto standard for the collections industry for close to 20 years now. For service organizations that currently have a SAS 70 service examination (“SAS 70 audit”) performed, changes will be required to effectively report under the new SSAE 16 standard.