What is ISAE 3402?

ISAE 3402 (International Standard on Assurance Engagements 3402) is an international assurance standard that outlines the requirements for service organizations to report on the controls that they have in place to protect the information of their client entities. The standard focuses on controls at a service organization that are likely to be relevant to user entities' internal control over financial reporting. It's commonly used by service organizations like cloud providers, SaaS companies, and payroll processors to provide assurance to their clients and auditors about the effectiveness of their control environment.