A company’s integrity can be helped when it is subjected to full auditing. The SAS 70 (Statement on Auditing Standard) has become the standard process by which this is done. Although the process is complex, the following is an overview of the basic facts.
Any number of firms can go through this process. These include the data centers and BPO (business process outsourcing). Clearing houses and other financial institutions are also included.
Type I and Type II Reports
The auditor evaluation can be either one of these two methods. The first or Type I contains the auditor’s evaluation of the facts. These include an assessment of company policies and an appraisal of its methods. These reports are based on a single day.
Type II is similar in many ways. The biggest difference is that this SAS 70 reports cover a wider time span. Because the time span is longer, it is favored by more companies and clients.
The Auditor’s Report
Regardless of the type, the report is presented as the Service Auditor’s Report. These are handed out to the company and to its clients. Depending on the company, the results may be kept for company use and viewing only.
Both of the reports contain the auditors’ assessment and a description of the company’s controls. Type II also includes the operating efficiency, various tests and other reports. These are usually not part of Type I reports.
There are no regulations when it comes to performing an audit. Even though the SAS 70 Type I report is for a day only, companies still do it once a year. Type II reports are usually done every six months. Some may prefer one report or the other. Most of the time though, companies get a Type I report every year and a Type II report twice yearly.
Because it is the standard, a company gets plenty of benefits when subjecting themselves to this auditing. For one thing it creates a transparent business environment. By getting good results from the auditing company, it can also do wonders for the company’s reflection. A company that gets positive marks from SAS 70 can be very helpful in projecting a positive image.
Since its inception, more and more companies are availing of this service. Apart from security companies, firms involved with health care are also using this service. Owing to its clarity and independence it helps companies a great deal. The Service Auditor’s Report can be given to the company auditor. This in turn can make planning and assessing the financial situation easier.
By using the Service Report a company also saves on costs. There is no longer a need to get repeated requests from clients. With the single report, it can be given to all the clients and or customers. It promotes efficiency.
The SAS 70 has become indispensable for a lot of companies. Because its worthiness is unquestioned, it goes a long way towards helping a company go in the right direction.