How Does a Service Organisation
Prepare for ISAE 3402?
The ISAE 3402 standard requires service organisations to take a proactive approach in meeting the requirements imposed by the service auditors (accountants). Therefore, service organisations can greatly benefit from conducting an ISAE ‘Readiness Assessment,’ which will help in understanding the reporting requirements.
These reporting requirements include:
- Preparing a description of the service organisation’s system.
- Preparing a written management statement of assertion, which will be included in the final ISAE 3402 report.
Additionally, an internal audit within the service organisation may be involved in the entire assurance process if the service organisation’s auditor deems their objectivity and professionalism acceptable. Thus, conducting an ISAE 3402 ‘Readiness Assessment’ will be crucial for service organisations in understanding the scope of the assignment as well as comprehending the reporting requirements for the ISAE 3402 standard.
