Regulatory Compliance, Governance and Security

Feb 23 2009   5:13PM GMT

SAS 70 Internal Controls | Important Facts and Tips to Know



SAS 70 audits test a wide array of internal controls within your organization for helping ensure SAS 70 Type I or Type II compliance. What’s interesting to note about these “internal controls” is that you need to truly understand what they are and how they relate to the “control objectives” being tested for during the SAS 70 audit.

Technically speaking, internal controls are: A process, affected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in various categories.

In more simpler terms, internal controls for SAS 70 audits can be best viewed as the processes, procedures, and related activities that YOUR organization has in place for ensuring that a structured, safe, sound, and secure “control environment’ is in place. In short, is your organization dotting your I’s and crossing your T’s when it comes to daily operations within your organization.

Now, there are a “best of breed” agreed up control objectives and related internal controls that should be used for SAS 70 audits, which you obtain from a quality CPA firm specializing in SAS 70 audits.

However, not all CPA firms use the same control objectives and technically, its really up to the organization undergoing the SAS 70 to actually construct, develop, and agree upon what there internal controls and control objectives would be. In reality, good quality CPA firms can help you with this. It’s really a colloborative process, to say the least, regarding SAS 70 internal controls.

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