For purposes of SSAE 16 compliance, the "fairness of presentation" concept is the notion that management effectively "asserts" within their SSAE 16 written statement of assertion that management's description of the service organization's "system" fairly presents the service organization's system that was designed and implemented at either a specific date (SSAE Type 1 report) or implemented throughout a specified time period (SSAE 16 Type 2 report).

Furthermore, the "suitable criteria" concept, which states that management is to select and use suitable criteria that is to be capable of being evaluated against "criteria" considered suitable for intended users. Simply stated, what criteria was the description of the "system" evaluated against for ultimately asserting to the fairness of presentation for SSAE 16 reporting?   This concept, thought not formally illustrated in this manner for previous SAS 70 reports,  should not be considered new to service organizations, as they did undertake similar practices with SAS 70.

To better understand the fairness of presentation concept, it would be helpful to embark on an SSAE 16 Readiness Assessment, a proactive engagement whereby your organization and a qualified, IR CPA firm can address this issue and many others.

To learn more about the fairness of presentation, the description of a system, the written statement of assertion and many other SSAE 16 standard issues, contact Christopher Nickell, CPA, of NDNB Accountants & Consultants, at 1-800-277-5415, ext. 706.  Additionally, Chris can provide your organization with a competitive, fixed-fee proposal for all your SSAE 16 compliance needs.