Why Payroll Companies are Subject to a SSAE 16 Examination

By: Scott Price, Managing Partner of A-LIGN

Classification

First, lets get down to the basics.  Payroll companies are classified as “classic” service organizations.  This is due to the fact that payroll companies typically use the same processes, procedures, controls, and systems to process payroll for a variety of companies. Continue reading “Why Payroll Companies are Subject to a SSAE 16 Examination”

Ask A-LIGN: Is my Organization Required to Obtain a Type 2 SSAE 16 Examination Annually?

Answer:

This is a question we are asked frequently by our clients and prospective clients, and the answer is: It Depends.

Here’s why:

The SSAE 16 guidance states that the period of review, or time frame that the report covers, should be at least six (6) months in the case of a Type 2 SSAE 16 examination.  While this standard sets a minimum period of review, it can be set to cover any period of time over 6 months – i.e., six months, nine months or one year. Continue reading “Ask A-LIGN: Is my Organization Required to Obtain a Type 2 SSAE 16 Examination Annually?”

SSAE 16 Benefits to Service Organizations

Service organizations receive significant value from having an SSAE 16 examination performed.  An SSAE 16 report with an unqualified opinion issued by an independent CPA firm differentiates your company from your peers by demonstrating that your company has achieved a defined set of control objectives relevant to your specific industry, your controls are effectively designed, and, in the case of a Type 2 report, that the controls are operating effectively over a period of time. Continue reading “SSAE 16 Benefits to Service Organizations”