Reviewed and corrected October 30, 2026. The original publication date is retained. The original article discussed the transition from SSAE 16 to SSAE 18.
If a contract asks for an “SSAE 16 report,” first clarify what assurance the customer actually needs. A standard number alone may not identify the right report, service scope, or coverage.
SOC 1 addresses controls relevant to customer financial reporting. SOC 2 addresses a system and applicable Trust Services Criteria. The AICPA SOC resources explain these different reporting objectives.
What Should the Parties Discuss?
- The report type and services or system to be covered.
- The relevant control objectives or Trust Services categories.
- Whether a Type 1 as-of date or Type 2 period is needed.
- When the report is expected and how it will be made available to permitted users.
- How exceptions, gaps in coverage, and material service changes will be discussed.
Example Scenario: A contract requests an annual SOC report but does not identify the hosted service being purchased. A report about a different service may not answer the customer’s question. Clarifying scope is more useful than simply replacing “SSAE 16” with “SSAE 18.”
Does Every Contract Need an Amendment?
That depends on the existing language, the services, and the parties’ obligations. Discuss proposed language with the people responsible for the contract and appropriate legal counsel. This article does not determine whether a particular agreement must be amended.
Clear report terminology can reduce confusion, but no wording removes the need to revisit requirements when the service or customer’s needs change. Our SOC 1 and SOC 2 comparison can help frame the reporting discussion.