By: Sue Wells, Senior Consultant at A-lign CPAs
Internal Controls vs. External Controls – What are we talking about?
For a payroll company, many of the controls that are executed on a daily basis are designed to ensure that the payroll company’s client’s financial reports will not be mis-stated, and that the information gathered from and generated on behalf of clients will be “protected” from mis-handling, both electronically and manually. These controls are considered to be “externally” focused and are primarily designed to benefit the payroll company’s client, and as such, will typically be what you see described and examined in SSAE 16 audits.