What international framework was SSAE-16 based on?

The correct answer is based on the fact that SSAE-16 (Statement on Standards for Attestation Engagements No. 16) is aligned with ISAE 3402 (International Standard on Assurance Engagements). SSAE-16 was introduced to enhance the reporting standards for service organizations, particularly those that provide services that affect the financial statements of their clients. It provides a framework for assessing the effectiveness of internal controls over financial reporting and establishes guidelines for auditors in conducting audits of these controls.

ISAE 3402 is an international standard that was developed by the International Auditing and Assurance Standards Board (IAASB) to guide the assessment and reporting on the controls at a service organization. Since SSAE-16 is essentially the U.S. equivalent of ISAE 3402, it directly builds upon the principles laid out in ISAE 3402, thus making it the foundation for SSAE-16.

By using ISAE 3402 as its basis, SSAE-16 integrates a globally recognized framework, ensuring that service organizations can provide transparency and assurance about the effectiveness of their internal controls. This alignment is particularly beneficial in an increasingly global market where standardized frameworks enhance comparability and credibility across different jurisdictions.