SAS 70 Audit Reports | Learn About SAS 70 by Obtaining a Sample Report

Many service organizations who have to undergo a SAS 70 Type I or Type II audit have never had the ability to see or read what a final report looks like after the audit has been completed. With this now available, service organizations can gain a greater understanding of the auditing standard, while also having an expectation of what the final report should look and “feel” like.

It’s one of the elements that was missing in the compliance industry, so we thought it was necessary and helpful to put forth an excellent example of a SAS 70 Type II service auditor’s report. And remember, because of the looseness within the auditing standard, no two reports are going to look exactly alike. Sure, there are slightly different variations of SAS 70 reports, but they should encompass and include most of the elements contained within our sample sas 70 available to all who wish to read on and learn more about statement on auditing standards no. 70.

Please take time to educate yourself on this highly used auditing standard by visiting a number of other areas on the website, such as the white papers section, industry news section, along with the what is sas 70 section.

SAS 70 Audits | Understanding PRICING for SAS 70 Engagements

SAS 70 Type I and Type II audits have become common for many organizations providing critical outsourcing services to companies. Known as service organizations, they have all landed on the regulatory radar of having to be SAS 70 compliant, due in large part because of Sarbanes Oxley (SOX) or any other large number of federal regulatory compliance mandates.. I’m often asked how much does a SAS 70 Type I or Type II audit cost. Well, that depends on a number of factors and circumstances that will be discussed today.

Issue #1: Choosing a Firm for the SAS 70 Audit

There are a number of providers available for SAS 70 audits, ranging from regional CPA firms to the nationally recognized big four firms. And as with anything in life, most organizations try to find the most value for their money, but remember, you get what you pay for. Small firms may be cost-effective, but they may lack the expertise and name recognition of other firms. The big four accounting firms will charge you a heavy premium audit fee, yet you get their name on the report, ultimately giving it a high level of recognition, simply based on who they are.

Remember, SAS 70 Type I and Type II audit prices have a wide range, so it’s probably a wise choice to pick in between, that is, a firm who is specialized, nationally known, not too large and bureaucratic, and provides you with a cost-effective, “fixed fee” that is fair, equitable, and you can live with.

Issue #2: Scoping the SAS 70 Audit

Numerous factors ultimately come into play for pricing considerations, but scoping is extremely important. It tells you and the CPA firm what will be tested, where it will be tested, and how long the test period will be, if a SAS 70 Type II audit is being performed.

To learn more about SAS 70 audits, visit the official sas 70 resource guide.

SAS 70 Audits and PCI DSS Compliance |What you NEED to Know

As an auditor, I am constantly approached by my clients desperately wanting to know if efficiencies can be obtained within the audit and assessment process for companies undergoing both a SAS70 audit and a PCI DSS assessment. There’s no simple yes or no, black or white answer to this, as many variables come into play when conducting a SAS70 audit or a PCI DSS assessment for organizations.

What I can tell you though is that there are some common themes and drivers seen in both a SAS70 audit and a PCI DSS assessment. Both a SAS70 audit and a PCI DSS assessment rely heavily on the existence of documented policies & procedures. Furthermore, both of these examinations also examine various aspects of physical security, network security, logical security, change management, to name a few. Quickly, you can see some overlapping themes in both a SAS70 audit and a PCI DSS assessment. So, that’s the YES answer to “audit efficiencies can be obtained” when a company has to undertake a SAS70 audit and a PCI DSS assessment. So, what’s the NO or the gray erea? Keep in mind that the PCI DSS assessment is a very technical examination, much more so than a SAS70 audit. At the same time, a SAS70 audit also covers comprehensive business process controls applicable to that specific entity being examined for a SAS70. A PCI DSS assessment does generally not cover or assess these specific business processes that a SAS70 would. Thus, you can see the gaps between these two examinations.

To learn more about what SAS70 is, visit the official SAS70 Resource Guide

To learn about Payment Card Industry (PCI) DSS compliance, visit the official PCI Resource Guide.

SAS 70 and Regulatory Audits | What is the Impact to our Economy?

The impacts, in my opinion, are the following. Interestingly, the last decade has seen somewhat of a shift in auditing. That’s not to say there has been a decrease in this specialized service, quite to the contrary. The shift has occurred as financial statement auditing has begun to see somewhat of a flat line in growth, while highly specialized audits, such as Statement on Auditing Standards No. 70 (SAS 70) have been given the limelight. Regulatory legislation, such as the Sarbanes-Oxley Act of 2002, the Health Insurance Portability and Accountability Act (HIPAA), the Gramm-Leach Bliley Act (GLBA), and numerous other federal and state laws have pushed audits, such as SAS 70, into the forefront. Additional audit or examination procedures that are non-financial in nature include the Payment Card Industry (PCI) audits, which are undertaken by entities that process credit card transactions, along with numerous ISO quality audits.

From a regulatory compliance perspective, impacts of audits to the economy have resulted in many service organizations having to become SAS 70 Type II compliant. It all starts with Section 404 of the Sarbanes-Oxley Act of 2002. In simple terms, section 404 states that management must establish effective internal controls as it relates to financial reporting and must also gain assurances from outsourced third-party vendors (i.e., service organizations) whose controls can affect financial reporting. Though it may sound somewhat vague and blurred, it’s really quite straightforward. Take note of the following example to see the effect SAS 70 has on section 404 of publicly traded companies.

Sarbanes Oxley (SOX) and SAS 70 | Understanding the relationship

Many people often ask me what exactly is the relationship between SOX and SAS 70. The relationship between SOX and SAS 70 begins with Section 404. Because management must report annually on it’s effectiveness of internal controls, it then has an obligation to inquire and inspect on all controls considered vital to the organization as a whole, but more importantly, to it’s financial reporting process. Since a large number of publicly traded companies outsource a host of critical services, these outsourcer providers, commonly referred to as “service organizations”, are considered an integral component for purposes of financial reporting. Therefore, a due-diligence process must be enacted to have their internal controls observed and certified. The Securities and Exchange Commission’s (SEC) Chief Accountant and the Division of Corporation Finance has stated that “In many situations, a registrant relies on a third party service provider to perform certain functions where the outsourced activity affects the initiation, authorization, recording, processing or reporting of transactions in the registrant’s financial statement. In assessing internal controls over financial reporting, management may rely on a Type 2 SAS 70 report.” So, there you have it. If you want to learn more about SAS 70, visit the most in-depth web site available on Statement on Auditing Standards No. 70, at www.sas70.us.com

SAS 70 | PCI DSS | 2009 Regulatory Compliance Checklist

When ushering in the new year festivities, keep in mind that a number of regulatory compliance issues will be facing your organization also as 2009 looms just around the corner. No, they’re not stocking stuffers, rather, they can be considered expensive, time-consuming, and arduous, to say the least. Here’s your list of 2009 Regulatory Compliance mandates that may very well find there way into your organization.

SAS 70
SAS 70 Type I and SAS 70 Type II audits have become increasingly popular since the advent of Sarbanes Oxely in 2002. Service organizations, third party outsourcing entities, and a slew of other companies have had to grapple with the time and costs associated with this widely recognized auditing standard. If your organization needs to become SAS 70 Type I or SAS 70 Type II compliant for 2009 and beyond, then take time to learn about this specialized auditing standard via the most comprehensive website available on SAS 70 audits, sas70.us.com. You can even obtain a free sample SAS 70 Type II report along with downloading numerous white papers and other expert subject matte on SAS 70 Type I and SAS 70 Type II audits.

PCI Compliance
Payment Card Industry Data Security Standards (PCI DSS) compliance is fast becoming a hot regulatory compliance issue. The major payments brands, such as Visa, Mastercard, American Express, Discover and JCB, have unilaterally agreed on a number of security provisions for the protection of cardholder data. In summary, any entity directly involved in the processing, storage, or transmission of transaction data or cardholder data should be looked upon as a PCI DSS candidate. But what really is PCI and where can you learn more about compliance and what your organization needs to do? Visit pciassessment.org, a comprhensive guide to understanding what PCI DSS compliance is and who is affected.

SAS 70 Audit Reports | Obtain a Sample SAS 70 Type II Audit

If you are seeking to learn more about SAS 70 Type I and SAS 70 Type II audits, then one of the most effective ways for truly gaining an understanding of the auditing standard is to see what the finished product looks like-that is, a final SAS 70 audit report. Many people voice great frustration when going through their first SAS 70 audit because they truly don’t know what the SAS 70 audit report “looks and feels” like, that is, what is the actual content, format, and layout of the report.

Having a sample SAS 70 audit report prior to commencement of the audit who greatly benefit service organizations as they can visually see the important components of what lies in the report itself. sas70.us.com provides sample SAS 70 Type II audit reports for organizations and individuals looking to learn more about Statement on Auditing Standards No. 70, commonly known as SAS 70.

This report will give you an in-depth layout of what a SAS 70 audit report is, what are the critical components and content that make up the report, and it will also allow you to gain a true conceptual understanding of what the audit is actually undertaken and performed by auditors.

Remember, knowledge is power, so the more you know and learn about SAS 70 audits, the more prepared you and your organization will be in undertaking a SAS 70 Type I or SAS 70 Type II audit.

SAS 70 Type II Audits | Become SAS 70 Compliant in a Cost Effective Manner

If your organization is seeking to become SAS 70 Type I or SAS 70 Type II compliant for 2009, then its time to roll up your sleeves and learn all you can about what a SAS 70 audit actually is along with many of its inner workings? And why? Knowledge is power. The more information you have about what a SAS 70 audit truly is, then the more informed you are about issues for the audit, such as scope, pricing, testing of controls, just to name a few. Think all SAS 70 audits are alike? Not quite. Does every CPA firm follow the same roadmap when conducting auditing and test procedures for SAS 70 audits? Hardly.

With that said, visit sas70.us.com and learn all you will ever need to know about Statement on Auditing Standards No. 70, simply known as SAS 70. You will be able to obtain critical information regarding SAS 70 audits, such as the history of the auditing standard, pricing considerations and factors to be taken into consideration for a SAS 70 audit, a SAS 70 roadmap for compliance checklist, just to name a few. It’s all part of being able to provide interested readers with a comprehensive guide to one of the most widely used and recognized audits in today’s business world.

So before you accept any proposals from any number of CPA firms that specialize in SAS 70 audits, take the time to educate yourself on the inner workings of what a SAS 70 audit actually is.

Today’s regulatory compliance mandates are here to say, and so are SAS 70 audits.

PCI Payment Card Industry Compliance | PCI DSS | Important Tips

Is your organization seeking to become Payment Card Industry (PCI) Data Security Standards (DSS) compliant for 2009? Are you a merchant or service provider that is directly involved in the processing, storage, or transmission of transaction data or cardholder data? If you answered yes to these questions, then its time you learn more about PCI DSS compliance and what the road ahead holds for your organization.

First and foremost, PCI DSS compliance is spreading like wildfire, to say the least. From small start up, locally owned companies to large e-commerce entities, PCI DSS compliance is becoming mandatory for every conceivable organization that conducts commerce with payment cards.

To be fair, regulation for PCI DSS compliance was somewhat lax and disjointed in the beginning, but much has changed in the last six months as the major payment brands are starting to push PCI DSS compliance much deeper and in a more transparent way then ever before.

If you want to learn more about Payment Card Industry Data Security Standards (PCI DSS) compliance, then visit pciassessment.org, one of the most in-depth sites currently available for PCI DSS news and information.

2009 is just around the corner, so properly plan for having your organization become PCI DSS compliant.

SAS 70 Type II Audits | An Auditor’s Expert Opinion on Pricing

People often ask me what the price of a SAS 70 Type I or SAS 70 Type II audit is. My response? That depends, I say, on many, many factors. Here is what needs to be understood when considering pricing factors for SAS 70 Type I and Type II audits:

1. The CPA firm-Are you looking for brand recognition or are you looking for a cost-effective provider which can simply help you “check the box” for SAS 70 compliance.

2. Scope-What is being examined and tested from a control perspective for SAS 70 audits? Are you looking for just a general controls audit or an audit that also includes specific business processes?

3. Testing period: For SAS 70 Type II audits, what is the testing period going to be? The longer the test period, the more the audit will cost as auditors have to pull larger samples, do more testing, etc.

4. Location of testing: How many physical areas does your organization have that will fall under the scope of the SAS 70 audit? Having more than one means that auditors will ultimately have to travel to numerous locations to conduct more testing. Again, more locations, more time, money, and expenses out of your pocket for the audit itself.

5. Are you confident you can obtain SAS 70 compliance without conducting a SAS 70 readiness assessment? If not and you need assistance identifying weaknesses and gaps within your control environment, then expect to spend more time, money, and resources on the front end of a SAS 70 audit for preparing in an adequate manner.

As you can see, there is no quick, easy, black and white answer to the cost of a SAS 70 Type I or Type II audit.

To learn more about statement of auditing standards no. 70, visit the official sas 70 resource guide, where you can obtain a wealth of information on sas 70 audits.