What is the history of SAS 70?
The AICPA established SAS 70 in response to a huge market shift toward outsourcing data processing. This shift in business operations put a significant portion of a company’s internal controls into the hands of the service organization they hired to process their transactions. Service organizations found themselves responding to multiple audit requests from their clients and their respective auditors, which strained their resources. SAS 70 eliminated the request for nonstop audits because one audit firm can now audit the internal controls. The auditors for the service organization’s customers (user organization) can rely on this single audit.
