The Statement on Standards for Attestation Engagements 16 (SSAE 16) is a regulation created by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA). What does it define?

a. It defines the method in which service companies must report on their compliance controls.
b. It defines the knowledge and skills required to operate core processes effectively.
c. It defines the integration of public and private clouds through networking.
d. It defines the issues faced by an organization integrating with a cloud computing environment.

a. It defines the method in which service companies must report on their compliance controls.
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. SSAE reports provide the auditors of user organizations with detailed information about controls at a service organization that affect the information provided to users. User auditors review the report to understand how the service organization interacts with the user’s financial reporting system, including how the information gets incorporated into the user’s financial statements. If a public company is using an outsourcing firm to perform financially significant duties for it, the public company is required to use a SSAE 16-qualified provider.