Why was SAS 70 replaced?
The IFAC and the IAASB adopted International Standard on Assurance Engagements (ISAE) 3402 in December 2009, which is the first standard the international community has established on issuing reports on controls at service organizations. Here in the U.S., since 1992, service organizations third-party vendors such as data processors, third-party administrators and fulfillment houses found their guidance from the AICPA Statement on Auditing Standards (SAS) No. 70, ‘Reports on the Processing of Transactions by Service Organizations.’ When the Auditing Standards Board (ASB) sought to bring its standards closer to those of the IFAC and the IAASB, it signaled the end of SAS 70. The changes will apply to reporting periods ending on or after June 15, 2011, with an option for early adoption. Many companies will need to submit required documentation to their independent auditor by the fall of 2010. What are the main differences between SAS 70 and SSAE 16? A report done under the guidance of SSAE
