What does the Type 2 Statement on Standards for Attestation Engagements 16 (SSAE 16) evaluate?

Question

a. It reports on the issues faced by an organization integrating with cloud computing environment.
b. It reports on the suitability of the design of the controls of a service provider over a period of time.
c. It reports on the fairness of the presentation of management’s description of a service organization’s system.
d. It reports on the upfront infrastructure costs of a firm and on projects that differentiate their core business process.

Answer 1

b. It reports on the suitability of the design of the controls of a service provider over a period of time.
SSAE 16 is a regulation created by the Auditing Standards Board of the American Institute of Certified Public Accountants that defines how service companies must report on compliance controls. Type 2 SSAE 16 engagement evaluates the suitability of the design of the controls over a period of time. Most organizations do not even consider using an outsourcing service provider without a clean Type 2 report in place.