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what are the differences of a financial audit verses a SSAE-16 audit? Why are these audits...

what are the differences of a financial audit verses a SSAE-16 audit? Why are these audits important and which do you think is the more thorough audit from a security perspective?

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Financial Audit

Financial audit is the audit of financial statement of a business by an independent auditor to give reasonable assurance that the financial statement are accurate and complete.

SSAE-16 Audit

SSAE-16 is the audit for service companies for redifining and updating how service companies report on compliance control.

The difference between financial audit and SSAE-16 audit is that SSAE-16 audit is audit of service organizations on internal control over financial reporting whereas financial audit is the audit of financial reporting system.

These audit are important to give reasonable assurance to the users of the financial statement such as investors, stockholders, government that the financial statement is correct and complete.

SSAE-16 audit is more thorough audit from a security perspective, as this audit deals with compliance of internal control. If there are loopholes in internal control system, then financial information may get sacrificed.

ekkarill92 answered 1 year ago
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