What is a SAS 70?
Statement on Auditing Standard No.70 (SAS 70) is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA) in 1992. It is used to report on the “processing of transactions by service organizations”, which can be done by completing either a SAS 70 Type I or Type II audit. A SAS 70 Type I is known as “reporting on controls placed in operation”, while a SAS 70 Type II is known as “reporting on controls placed in operation” and “tests of operating effectiveness.” Back to top • Why is my organization being asked to become SAS 70 certified? There are a number of reasons why more and more organizations (i.e., service organizations) are being asked to become SAS 70 compliant. Primarily, it stems from the growing surge of legislation, such as the passing of the following recent laws; the Health Insurance Portability and Accountability Act of 1996 (HIPAA), Gramm-Leach-Bliley Act of 1999, but most notably, the Sarbanes-Oxley Act of
