SAS 70
Statement on Auditing Standards (SAS) no. 70 is a widely recognized auditing standard as it allows service organizations to disclose their control activities. The circulation of the service auditor’s report prepared according to SAS 70 indicates that a service organization had control activities examined by any auditing firm. It provides guidance to facilitate an independent auditor to briefly understands the opinion on a service organization’s description. Moreover, it’s generally applicable when an independent auditor is planning to prepare financial statements of an audit that intake the services from other organizations.
Cyber Radar Systems forces organizations to know that SAS 70 is not a ‘checklist’ audit. Effective and efficient risk management depends on enterprises’ ability to maintain a strong control ecosystem. Businesses who’re not involved and engaged in SAS 70 examination, can actively participate in such services for assessing risks, evaluating the design of controls, and periodically testing. Clear it, SAS 70 doesn’t cover all the factors that a risk assessment framework would.
SAS 70 Compliance Growing
Do you know why more and more service organizations are being asked to become SAS 70 compliant? The overall growth in technology into all layers of businesses has affected the growth of Statement on Auditing Standards. Primarily, there were three rulings advocate such as the Health Insurance Portability And Accountability Act (HIPAA), Gram-Leach-Bliley Act, and the last the Sarbanes-Oxley-Act both section 303 and 302. Therefore, there was a need in several organizations for a due diligence process that offers a high level of assurance for outsourcing critical business functions.
We can say it’s a huge movement within a business culture that contains all the data and IT transactions, also ensure that they are safe and secure all the time.
What type of Industries have to become SAS Compliant
Almost all the servicing industries have welcomed digital strategies due to which the scope of SAS 70 audit has tremendously grown. Hence, every conceivable industry can be viewed as a potential candidate for such type of audit.
All the prime candidates are categorized below for your consideration:
- Claims processing centers
- Data centers and co-locations
- Internet Service Providers
- Trust plan administrators
- Payroll Processors
What are the advantages of becoming SAS 70 certified
Benefits to Service Organizations, a clean opinion from SAS 70 service auditor’s report says that your business has effective controls, yet there’s a declining ratio. Ultimately it has the ability to leverage SAS 70 certification to stand against competitors.
Benefits to user organization, multiple organizations are able to understand the assurance of internal controls in space at service organizations. This is the certification that signifies industries have taken steps in developing numerals controls throughout platforms.
Why SAS 70 Audits are unique
It’s an effective methodology to engage multiple servicing industries, it has everything unique in its nature, auditors implement a qualitative list of policies, procedures, and related controls. The main reason that distinguishes the type of audit superior to any other type of internal control review is quite simple as the scope of engagement and the amount of information included in the final service auditor’s report.
Remember, only a Certified Public Accountant (CPA) can sign off as a SAS 70 Type I or Type II service, there are several IT industries engaged in SAS 70 audit work and they’re strictly prohibited to issue a report, therefore, you should never glance them as your primary source.
Cyber Radar Systems is offering both types of SAS 70 reports.
1. Type I Report: Our professionals offer two types of opinions regarding service control on a specific date, firstly, it presents the auditor’s suggestion whether your organization’s description reveals a clear picture of controls in a place, second, it intakes auditor’s suggestion whether the control system was designed to achieve organization’s objectives.
2. Type II Report: It provides reasonable assurance of both suggestions of Type I that the control objective was achieved during a specific period of time.
Welcome to SAS 70 Audit: Cyber Radar Systems ensure providing a means of developing a risk management structure, testing and improving controls, and documenting it in all a systematic, repeatable, authoritative manner.