SAS 70 and SSAE 16

A SAS 70 audit or service auditor's examination signifies that a service organization has had its control objectives and control activities examined by an independent accounting and auditing firm. Service organizations or service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their customers.

Apple Growth Partners provides Type I and Type II reports. Type I reports include the independent auditor's opinion and the service organization's description of controls. The Type II report adds in includes more description of the auditors tests of operating effectiveness and test results. Both reports may include other information provided by the service organization that help clearly define terms and processes.

A Readiness Assessment can also be performed prior to the actual SAS 70 audit. The readiness assessment  used as a planning tool to help identify the timing and scope of the audit, identify areas of concern before the audit, and establish communication protocols for the audit.

Service organizations that have a SAS 70 audit performed gain the benefits of documented policies and procedures, effective and efficient controls, and ultimately a high level of trust and assurance for customers.

Service organizations should be aware that a new standard, SSAE 16, will replace the SAS 70 standard in June 2011. For more information, please download this SAS70 Bulletin.

 

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