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SAS-70 Benefits

Published by Rob Thomas | June 20th 2009 | Views:

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Benefits accruing to the Service Organization
The Service organizations getting the SAS-70 audits done receive significant benefits from having a SAS-70 audit performed. The Service Auditor's Report usually with an unqualified opinion which is issued by an Independent Audit Firm puts the service organization in a different league from its peers by establishing that it has more effectively designed internal control objectives and activities. A Service Auditor's Report allows the service organization to build trust with its customer user organizations.

Unless a SAS-70 audit has been undertaken at a service organization it may have to entertain and receive audit requests from its multiple customers together from their respective auditors. Such multiple requests followed by visits from multiple user auditors can create a lot of administrative problems at the service organization's level. A Service Auditor's Report allows the service organization to ensure that all customer user organizations and their respective auditors get a copy of the SAS-70 Audit report, which in all cases will be sufficient to satisfy the customers’ auditor's requirements.
Benefits accruing to the User Organization

User organizations that get a Service Auditor's Report from the service organization(s) get abundant and reliable information in respect the service organization's practices in respect of internal controls in use and the effectiveness of such controls. The user organization are entitled to receive a detailed description about the service organization's internal controls and a report by independent assessment by an qualified auditor as to whether the internal controls were placed in proper operation, were suitably designed, and are operating effectively
User organizations need to provide a Service Auditor's SAS-70 Report to their respective auditors. This will allow the user auditor in planning the financial audit of the user's financial statements. Without a Service Auditor's SAS-70 Report, the user would have to incur extra costs for sending their auditors make an assessment of the service organization’s internal controls.
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