The International Standards for Assurance Engagements (ISAE) 3402 is a global assurance standard for reporting on controls at service organizations in order to protect shareholders and the general public from accounting errors and fraudulent practices.
An ISAE 3402 engagement enables a service organization to have its control policies and processes evaluated and tested by a third party. Opportunities for advancement have been identified as a result of the process in a variety of operational areas.
Organizations that follow the ISAE 3402 standard identify their control purpose and make sure it aligns with the needs of their customers. In other words, if the organization is supplying financial information that may have an impact on your client's financial reporting, an ISAE 3402 SOC1 audit will likely be asked of you.
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