Case Study – SSAE 16 (SOC 1) for Payroll Administration Services
Organizations that directly provide payroll administration services to your clients or are a vendor associated with companies that provide payroll administration services such as electronic funds transfer, payroll debit cards, payroll software, tax filing, or time and attendance and as such have a direct or an indirect impact on the end customers’ financial statements.
Client Service Offering
The Organization provides its Customers with the following services through its HR and Payroll applications:
- On-line payroll processing
- On-site printing of payroll checks and reports
- Benefits management tools for Customers to track their insurance information
- Third-party check processing
- Human Resource (HR) employee information storing and processing
- Compensation and review tracking and management tools
The Sarbanes Oxley Act (“SOX”) requires that publicly traded companies that outsource a portion of their processes obtain independent assurance from their service organization around the controls that impact their financial statements.
The SSAE 16 (SOC 1)
report can effectively replace the need for the service organization to be subject to multiple audits from its customers and their respective auditors. Multiple visits from user auditors can place a huge burden on the service organization’s limited resources. An SSAE 16 report ensures that all customers of service organizations and their auditors have access to the same information and in many cases this will satisfy the user auditor’s requirements. The SSAE 16 may also help service organization recognize significant efficiencies in its business processes as well as improvement in its controls and control environment through value added recommendations from the service auditor.
Click here to read more on SSAE 16 / SOC1 Audits.