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SAS 70
Audit Certification
SAS 70 is an
acronym for the American Institute of Certified Public
Accountants (AICPA) Statement on Auditing Standard (SAS) 70,
titled “Reports on the Processing of Transactions by Service
Organizations”. |
SAS 70
defines the professional standards used by an
independent CPA auditor to assess the internal controls
of a service organization and issue a service auditor’s
report. A SAS 70 audit offers many potential benefits to
service organizations. The following are a few examples
of the potential benefits that SAS 70 certified
organizations experience:
- A SAS
70 report allows a company to provide outside parties
with independent third party verification regarding
the state of their internal controls.
-
Undergoing a SAS 70 audit often distinguishes a
company over its competitors, particularly when the
company operates in an industry with many start-ups or
competes with companies that tend to maintain poor
control environments (e.g. Application Service
Providers, Third Party Administrators, etc.)
- A SAS
70 report is often accepted by third parties such as
customers, customers external auditors, and regulatory
auditors, as a substitute for those parties performing
their own audit.
- If
properly designed, a SAS 70 audit can provide benefits
similar to an internal audit function to companies
that do not currently have an internal audit
department.
ARG
has been SAS 70 Phase I certified by independent auditor
Vijay Khosla, CPA of the
Princeton Audit Group.
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