Regulatory Compliance, Governance and Security

Jun 20 2009   3:20AM GMT

SAS 70

Charles Denyer Charles Denyer Profile: Charles Denyer

Statement on Auditing Standards No. 70, simply known as SAS 70 to many, has had a profound impact on regulatory compliance since the passage of the Sarbanes Oxley Act in 2002. As a SAS 70 auditor for many years, i’ve been asked a broad and wide range of questions regarding the who, what, where, when and why of SAS 70 Type I and SAS 70 Type II audits. Thus, if you need to learn everything you possibly can about SAS 70, then visit the official SAS 70 Resource Guide, where a voluminous amount of information is available.

Now, with that said, let me touch on a subject that has been brought up so many times it feels like a broken record: SAS 70 PRICING. So, what do they cost? What SHOULD they cost? These are some of the questions i fielded over the years. With that said, i can tell you what my honest best assessment is for pricing on these engagements, so here you go.

A general controls SAS 70 Type I that covers no real business processes and all fieldwork can be done at one location should be between $15,000 and $25,000.

A general controls SAS 70 Type II that covers no real business processes and all fieldwork can be done at one location should be between $25,000 and $35,000. Thus, subsequent years “could” see a decrease in fees (marginal, that is) if the control environment stays somewhat static.

If you start adding in requirements to test a wide array of specific “business process” controls, the price will go up. Keep in mind, some firms may charge (and do) a slightly cheaper fee than i’ve just quoted. But remember, you get what you pay for, especially for auditors. Find that healthy medium from a quality, boutique CPA firm that specializes in SAS 70 audits and you should be fine.

 Comment on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: