Tag: sample ssae 16 report

Firewall Controls in SOC 1 and 2: A Practical Example

Another series we will have periodic posts about will be related to potential controls that would be expected to be in place, almost regardless of the entity in question. This will be a real basic one to help get everyone up to speed, we will delve into other areas that may be a little more advanced in the future. Example: Firewalls are in place at all externally facing access points.The point of this control is to ensure that firewalls are being used at the organization to help prevent hacking attempts, thus, the theft of data. Companies outsourcing their workloads want to have comfort that the company performing the work has adequate security measures in place to lower the chance of their data being stolen. The Importance of Firewalls Firewalls act as a barrier between your secure internal network and untrusted external networks such as the internet. Their primary function is to control the incoming and outgoing network traffic by analyzing data packets and determining whether they should be allowed through or not, based on predetermined security rules. Why Firewalls Are Essential Immediate Action Required If your organization does not currently have firewalls in place at all externally facing access points, this should be addressed immediately. The absence of this basic control not only exposes you to unnecessary risks but may also result in non-compliance with various regulatory standards.

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SSAE 16 Type I Report Background Information

There are significant differences between a Type I and Type II report, however, we aren’t going to discuss that here, thats for another day. We will discuss the basics of a SSAE 16 Type I Report and some areas that should be focused on if this is the direction your company wants to take. While the Type I Report doesn’t carry much weight, there are benefits, and that’s why it exists as an option. A Type I Report is specifically defined by the SSAE 16 guidance as a “report on a description of a service organization’s system and the suitability of the design of controls”, essentially, a determination of if your company’s controls designed appropriately. When performing a Type I report, the auditors will test the design effectiveness of your company’s defined controls by examining a sample of 1 item per control. This provides a user organization with some comfort that your company (the service organization) has at least some controls in place. This can be useful when trying to obtain a contract and to show good faith to the potential user organization that your company is moving in the right direction. Most user organizations will require a Type II Report before contracting your company as a service organization of theirs. The Type I Report is made up of 3 major areas, per the SSAE No. 16 Guidance: a description of the service organization’s system prepared by management of the service organization. – Management will need to prepare a description

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