INDUSTRIES

Case Study - SSAE 16 (SOC 1) for the Collection Industry

Industry
Service organizations that provide collection services on behalf of companies may affect the financial reporting of those companies. Often these service organizations provide information regarding cash receipts on accounts receivables either in gross total or net of the collection company’s fees. These companies may be subject to SSAE 16 (SOC 1).

Client Service Offering
The service organization provides collection services to clients in numerous industries. The client receives information regarding the debtor including amount owed.

Client Need
The client’s customers required that they obtain independent assurance from their service organization around the controls that impact their financial statements and the security of the data the service organization holds.

Solution
The SSAE 16 (SOC 1) report can effectively replace the need for the service organization to be subject to multiple audits from its customers and their respective auditors. Multiple visits from user auditors can place a huge burden on the service organization's limited resources. An SSAE 16 report ensures that all customers of service organizations and their auditors have access to the same information and in many cases this will satisfy the user auditor's requirements. The SSAE 16 may also help service organization recognize significant efficiencies in its business processes as well as improvement in its controls and control environment through value added recommendations from the service auditor.

Click here to read more on SSAE 16 / SOC1 Audits.