The Statement on Standards for Attestation Engagements 16 (SSAE 16)is

question 24

Multiple Choice

The Statement on Standards for Attestation Engagements 16 (SSAE 16) is a regulation created by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) .What does it define?

• A)It defines the method in which service companies must report on their compliance controls.
• B)It defines the knowledge and skills required to operate core processes effectively.
• C)It defines the integration of public and private clouds through networking.
• D)It defines the issues faced by an organization integrating with a cloud computing environment.

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Definitions:

Variable Returns

Financial returns from an investment that are not fixed and can vary based on performance or other factors.

Credit Risk

The risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.

Adjusting Journal Entries

Entries made in account books at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Ledger Accounts

Register that contains a record of all financial transactions categorized by account types within an organization's financial statements.