Tab 4: Results of Examination and Independence Report from the Service Organization Control Auditor
Lauren Edmonds, Manager
BrightLine CPAs & Associates, Inc.
2012 SSAE 16 Examination Highlights
SSAE 16 Examination Report is ready for issuance pending F&A Committee approval
The report will be issued with an unqualified opinion
No testing deviations or disclosures were identified
Discussion Topics
ERCOT 2012 SSAE 16 Overview
Auditor Independence
SSAE 16 Overview
Statement on Standards for Attestation Engagements (SSAE) No. 16 examinations, also referred to as SOC 1 examinations, are utilized to report on controls at service organizations that are relevant to user entities’ internal control over financial reporting.
The 2012 SSAE 16 examination examined the Settlement Operations for the period of October 1, 2011, to September 30, 2012
BrightLine worked with ERCOT process owners to modify control objectives and activities to align with current business processes
19 Control Objectives were within the scope of the 2012 audit
Audit testing was conducted in two phases -May 2012 and September 2012
Auditor Independence
Professional standards require that CPA firms maintain independence in fact and appearance from their clients. 
To meet this requirement, BrightLine has implemented the following policies and procedures:
Implementation of Quality Control Procedures
Education
Elimination of all consulting services
Prohibition of any direct or materially indirect financial interest in clients by employees or their close relatives
Annual independence verification