sas 70 audit

SAS 70 Audit | Why a Readiness Assessment is Crucial

If your organization is seeking to become SAS 70 Type I or Type II compliant in the near future, then it is a wise decision to embark on a SAS 70 Readiness Assessment. These assessments essentially help you identify your control environment, the scope of the audit, and what deficiencies or gaps may be present within your overall internal control framework within your organization. It should not be looked upon as an additional cost of a SAS 70 audit, but that of a useful and proactive exercise in preparing your organization for the rigors of going through an actual SAS 70 audit.

Working right towards SAS 70 Type I or Type II compliance without conducting a SAS 70 Readiness Assessment can be a daunting and challenging task. Many problems can arise out of this, such as not properly scoping the audit, not adequately identifying weaknesses within your control structure, along with other critical and material issues. The result can be cost and time overruns to correct these issues that should of been addressed prior to the actual audit.

To learn more about SAS 70, visit the official SAS 70 Resource Guide.

SAS 70 Audit and Compliance Tips for Data Centers

Learn more about SAS 70 audits for data centers by reviewing the step by step SAS 70 audit process. From beginning to end, a number of steps, activities, and deliverables must be undertaken for ensuring the audit is successful. From the initial SAS70 readiness questionnaire assessments to the delivery of the final audit report, both the CPA firm conducting the audit and the data center employees will be working together in a collaborative manner for the audit.

Follow this step by step process if you are a data center or co-location facility that will be performing a SAS 70 audit in the near future:

First and foremost, identify the scope of the SAS 70 audit. Though it sounds quite straightforward, every CPA firm approaches scope in a slightly different manner. When identifying scope, there are a number of items to keep in mind, such as the following: Does the scope of the audit satisfy your client’s demands? Does the scope of the audit conform to industry accepted standards for SAS 70 audits on data centers?

Once the scope has been identified, it’s critical to begin the planning process with the auditors. A series of planning meetings should include a discussion on the following items:

1. SAS 70 readiness questionnaire assessment and when it will be done (if deemed necessary).

2. Discussion of type of sampling that is conducted for the audit (this is important as auditors have varying views on the numbers and amounts done on audit sampling).

3. Discussion that identifies key personnel involved in the audit from both sides.

4. Discussion on what data center physical security controls will be included in the scope of the audit.

These are just some general parameters to get you going in the right direction.

If you want to learn more about SAS 70 audits, then visit the official SAS 70 resource guide, where you can obtain SAS 70 sample reports for review.

SAS 70 Audits | Understanding PRICING for SAS 70 Engagements

SAS 70 Type I and Type II audits have become common for many organizations providing critical outsourcing services to companies. Known as service organizations, they have all landed on the regulatory radar of having to be SAS 70 compliant, due in large part because of Sarbanes Oxley (SOX) or any other large number of federal regulatory compliance mandates.. I’m often asked how much does a SAS 70 Type I or Type II audit cost. Well, that depends on a number of factors and circumstances that will be discussed today.

Issue #1: Choosing a Firm for the SAS 70 Audit

There are a number of providers available for SAS 70 audits, ranging from regional CPA firms to the nationally recognized big four firms. And as with anything in life, most organizations try to find the most value for their money, but remember, you get what you pay for. Small firms may be cost-effective, but they may lack the expertise and name recognition of other firms. The big four accounting firms will charge you a heavy premium audit fee, yet you get their name on the report, ultimately giving it a high level of recognition, simply based on who they are.

Remember, SAS 70 Type I and Type II audit prices have a wide range, so it’s probably a wise choice to pick in between, that is, a firm who is specialized, nationally known, not too large and bureaucratic, and provides you with a cost-effective, “fixed fee” that is fair, equitable, and you can live with.

Issue #2: Scoping the SAS 70 Audit

Numerous factors ultimately come into play for pricing considerations, but scoping is extremely important. It tells you and the CPA firm what will be tested, where it will be tested, and how long the test period will be, if a SAS 70 Type II audit is being performed.

To learn more about SAS 70 audits, visit the official sas 70 resource guide.