In April 2010, the American Institute of Certified Public Accountants ("AICPA") Auditing Standards Board issued Standards for Attestation Engagements No. 16 ("SSAE 16"), titled Reporting on Controls at a Service Organization. SSAE 16 was issued to replace Statement on Auditing Standards 70 ("SAS 70") and converge with international standards.
Also known as a "Type II Service Auditor's Report" or "Independent Service Auditor's Report on Description of a Service Organization's System and the Suitability of the Design and Operating Effectiveness of Controls", the SSAE 16 Type II report provides independent third party verification of management's assertion that a service organization's policies and procedures were correctly designed and were operating effectively throughout the period in order to achieve the specified control objectives.
Nate Evans CEO of LexServ stated, "To our knowledge we are the only servicer in the space to offer this level of external process validation to the industry."
The independent SSAE 16 audit was conducted by Ernst and Young a public accounting and consulting firm who evaluated and tested LexServ's internal operational controls and processes, and issued an unqualified opinion. SSAE 16 is an auditing standard utilized by service organizations to demonstrate their internal controls and security practices to their clients. By successfully completing the SSAE 16 audit, LexServ demonstrates, with third-party validation, the effectiveness of its significant control practices and operational procedures.
LexServ pursued this certification to support client audit requirements and as part of its ongoing goal to provide world class service.