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SSAE 16 Certification

California Payroll has successfully completed the most recent SSAE 16 certification. SSAE 16 is the new service organization reporting standard set by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA). SSAE 16 replaces the previous reporting standard, SAS 70, and represents a move toward more globally accepted accounting principles. There are two main differences between SSAE 16 and the previous standard. While the SAS 70 auditing standard only required a description of “controls”, the SSAE 16 standard requires a description of the organization’s “system”, i.e., services provided by the organization and all operational activities that affect the organization’s clients. This is considered to be more comprehensive and expansive than the SAS 70 “controls” requirement. In addition, the organization must also assert that their description honestly describes their control objectives and the time period in which they are meant to be evaluated.

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