Question

The statement of standards for attestation engagements number 16 (ssae 16):

a) provides guidance to auditors when verifying controls and processes.
b) provides two levels of audit reports: soc 1 and soc 2.
c) requires that audit reports describe how to implement audited controls.
d) has been superseded by SAS 70.

Answer 1

The statement of standards for attestation engagements number 16 (SSAE 16) provides guidance to auditors when verifying controls and processes of service organizations.

Step-by-step explanation:

The statement of standards for attestation engagements number 16 (SSAE 16) was introduced by the American Institute of Certified Public Accountants (AICPA) as a replacement for SAS 70. It provides guidance to auditors when verifying controls and processes of service organizations. It is specifically focused on controls relevant to the financial statements of service organizations.

SSAE 16 does not provide two levels of audit reports (SOC 1 and SOC 2) as mentioned in option b. SOC 1 and SOC 2 are separate standards that were introduced by the AICPA. Option c is also incorrect because SSAE 16 does not require audit reports to describe how to implement audited controls.

So, the correct option is a) provides guidance to auditors when verifying controls and processes.