Statement on Auditing Standards (SAS) No. 70, Service Organizations, is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA).
A SAS 70 audit or examination is widely recognized because it represents that a service organization has been through an in-depth audit of their control activities. This generally includes controls over transaction processing, systems and related processes.
A SAS 70 is the authoritative guidance that allows service organizations to disclose their control activities and processes to their customers and their customers' auditors in a uniform reporting format.
Who normally needs a SAS 70? 
SAS 70 reviews are applicable to any organization that provides services for other organizations. These services include processing transactions related to the financial statements; and encompass application service providers, third party administrators (TPAs), bank trust departments, claims processing centers, Internet data centers or other data processing service centers and outsourcers. Interested parties of the SAS 70 review include:
- Customers of a service organization gain an assurance of a system of internal controls protecting the company’s data.
- The customer’s auditors gain an assurance of the controls in place to protect the customer’s data.
- Potential costumers can gain assurance that a strong system of controls is in place which will ensure the integrity of their processes.
- The service organization auditors have a detailed independent audit of the company’s system of internal controls.
When might I need a SAS 70?
A formal report including the auditor's opinion ("Service Auditor's Report") is issued to the service organization at the conclusion of a SAS 70 examination. SAS 70 allows for two different types of reports:
- Type I reports on the presence of certain controls at a point in time.
- Type II reports on the presence of certain controls at a point in time as well as the effectiveness of the operation of those controls over a period of time.
Why should I engage Brown
Smith Wallace?
We make A Measurable Difference™. Brown Smith Wallace has performed many SAS 70 Reviews for a broad spectrum of service organizations in the insurance, benefits, healthcare claims and information systems industries.
We have an experienced staff of control-oriented and certified professionals who are uniquely qualified to perform SAS 70 Reviews, a skill set rare for a firm of our size.
What else should I consider?
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