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SAS 70
Practical Law Glossary Item 7-503-2629 (Approx. 3 pages)
Glossary
SAS 70
Also known as Statement on Auditing Standards (SAS) No. 70, Service Organizations. An internationally recognized accounting standard issued by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA). SAS 70 was replaced by SSAE 16 for service auditor reports for periods ending on and after June 15, 2011, and SSAE 16 was replaced by SSAE 18 for service auditor reports for periods ending on and after May 1, 2017. SAS 70 applies to service auditor reports for periods ending before June 15, 2011.
There are two types of SAS 70 service auditor reports:
- A Type I report expresses the service auditor's opinion on whether:
- the service organization's description of its internal controls was fairly presented as of a specified date; and
- the service organization's internal controls were suitably designed to achieve the control objectives included in that description as of a specified date.
- A Type II report expresses the same opinions as in a Type I report, but also expresses the service auditor's opinion on whether the service organization's internal controls operated effectively throughout a specified period.