Regulatory Compliance, Governance and Security » sas 70 rfp http://itknowledgeexchange.techtarget.com/compliance-governance Thu, 10 Mar 2011 15:04:50 +0000 en-US hourly 1 SAS 70 Audits | Make Sure to Get a “Fixed Fee” for the Audit http://itknowledgeexchange.techtarget.com/compliance-governance/sas-70-audits-make-sure-to-get-a-fixed-fee-for-the-audit/ http://itknowledgeexchange.techtarget.com/compliance-governance/sas-70-audits-make-sure-to-get-a-fixed-fee-for-the-audit/#comments Mon, 27 Oct 2008 21:22:26 +0000 Charles Denyer http://itknowledgeexchange.techtarget.com/compliance-governance/sas-70-audits-make-sure-to-get-a-fixed-fee-for-the-audit/ SAS 70 audits today are being conducted by CPA firms large and small, big and tall. Though they vary greatly in size, complexity and audit skills, what seems to be the industry standard is a “fixed fee” for the audit. Fixed in meaning that all the fees for the engagement are wrapped and bundled into one price. This “fixed fee” also includes any out of pocket travel and miscellaneous expenses that the CPA firm would incur for doing the audit.

Buyer beware, as not all “fixed fees” are the same. Some “fixed fee” have clauses that say the “fixed fee” is only for the engagement itself and does not include travel or any other expenses you may incur. Additionally, some fixed fees may include the travel and out of pocket expenses may also bill you for preparing reports, after audit consulting fees, etc.

In short, read the fine print and make sure the “fixed fee” really is fixed. Another point, make sure the fixed fee gradually goes down after year one. Why? Because the CPA firm conducting the audit should have a good working knowledge of your company, thus fees should be marginally reduced for subsequent years (5 to 10 percent). However, if your scope changes, then expect the fees to go up.

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

]]> http://itknowledgeexchange.techtarget.com/compliance-governance/sas-70-audits-make-sure-to-get-a-fixed-fee-for-the-audit/feed/ 0 SAS70 Audits | A Great Way to Grow your Business http://itknowledgeexchange.techtarget.com/compliance-governance/sas70-audits-a-great-way-to-grow-your-business/ http://itknowledgeexchange.techtarget.com/compliance-governance/sas70-audits-a-great-way-to-grow-your-business/#comments Sun, 21 Sep 2008 17:01:10 +0000 Charles Denyer http://itknowledgeexchange.techtarget.com/compliance-governance/sas70-audits-a-great-way-to-grow-your-business/ SAS70 audits can be seen as expensive, time consuming, and arduous, to say the least. What’s important to note though is that a SAS70 audit can be seen as a great tool for helping promote and grow your business. Just take a look at the heightened regulatory compliance and corporate governance arena we know live in. Need further proof? How you noticed how many request for proposals (RFP) that are put out to service organizations now require a SAS70 Type II audit report if you want to even be CONSIDERED a viable outsourcing entity.

Sure, they can be time consuming and expensive, but if they help your business grow, and they have done just that for many service organizations, then it should be looked upon as an effective value proposition for your business.

From an operational standpoint, SAS70 Type I and SAS70 Type II audits help you greatly understand your system of internal controls, where you are weak, where your controls are strong, and what has been unearthed during the SAS70 process to help your organization in becoming an entity that truly values controls at all levels throughout your organization.

Want to learn more about SAS70 audits, such as what a SAS70 really is? Then visit the official SAS70 resource guide.

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