Other Canadian Standards

Reporting on Controls at a Service Organization

Summary

The objective of this project is to update Canadian Standard on Assurance Engagements (CSAE) 3416, Reporting on Controls at a Service Organization, which was issued in 2010. 

Staff Contact(s)

Karen DeGiobbi, CPA, CA

Principal, Auditing and Assurance Standards Board

Project Status

  • Information gathering

    Completed prior to November 2016

  • Approving project

    Project proposal approved in November 2016

    The Exposure Draft is being developed and is expected to be issued in Q1 2019

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


October 15, 2018

AASB Decision Summary — October 15-16 2018

The AASB unanimously approved an exposure draft of CSAE 3416, Reporting on Controls at a Service Organization Relevant to User Entities’ Internal Controls over Financial Reporting. The exposure draft is expected to be issued in December 2018 and will have a 60-day comment period.

September 14, 2018

AASB Decision Summary — September 13-14, 2018

The AASB discussed issues related to its project to revise Canadian Standard on Assurance Engagements (CSAE) 3416, Reporting on Controls at a Service Organization, and the exposure draft highlights memorandum. Issues discussed included:

  • the consistency between revised CSAE 3416 and other subject-matter-specific standards; and
  • areas where proposed CSAE 3416 requirements differ from those in the American Institute of Certified Public Accountants equivalent standard, AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting.

The AASB expects to approve an exposure draft at its October 2018 meeting.

June 12, 2018

AASB Decision Summary – June 11-12, 2018

The Board discussed issues related to its project to revise Canadian Standard on Assurance Engagements (CSAE 3416), Reporting on Controls at a Service Organization, including:

  • challenges affecting the overall approach to the project; and
  • use of the terms “audit” versus “reasonable assurance” in the service auditor’s report

January 26, 2018

AASB Decision Summary – January 25-26, 2018

The Board discussed the proposed project plan to revising CSAE 3416, Reporting on Controls at a Service Organization. The revisions to CSAE 3416 are required to align the standard to the American Institute of Certified Public Accountants’ attestation standard AT‐C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting, which came into effect in May 2017. The Board decided to create a Task Force to assist in revising the standard.

November 29, 2016

AASB Decision Summary – November 28-29, 2016

The AASB unanimously approved a project proposal to revise CSAE 3416, Reporting on Controls at a Service Organization, in light of the American Institute of Certified Public Accountants’ new attestation standard AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting.  The AASB discussed:

  • issuing an interim communication outlining key differences between CSAE 3416, AT-C Section 320 and ISAE 3402, Assurance Reports on Controls at a Service Organization; and
  • the need for input from practitioners with expertise in these standards on this project.

October 18, 2016

AASB Decision Summary – October 17-18, 2016

The AASB considered a project to revise CSAE 3416, Reporting on Controls at a Service Organization, in light of the American Institute of Certified Public Accountants’ new attestation standard AT-C Section 320, Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting, and discussed:

  • the need to better understand the differences between CSAE 3416, AT-C Section 320 and ISAE 3402, Assurance Reports on Controls at a Service Organization; and
  • whether there is a need for interim guidance on the implications for service auditors and users of service auditor’ reports of the differences.

The AASB plans to consider the draft guidance and a project proposal at its next meeting.

News


October 19, 2018

News

In Brief – A plain and simple overview of the AASB’s project to revise CSAE 3416, Reporting on Controls at a Service Organization

October 19, 2018. Changes are coming to engagements to report on controls at a service organization (also known as SOC 1 engagements). Read our In Brief for a progress update on the project, including key timelines for the AASB’s upcoming exposure draft.

May 18, 2017

News

Auditing and Assurance Bulletin- Reporting on Controls at a Service Organization: Bridging the Gap Between Canadian and Revised U.S. Standards

May 18, 2017. This Bulletin will assist stakeholders during the period while the Canadian and U.S. standards on reporting on controls at a service organization are not aligned.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.