In my earlier post, I had discussed that a SAS 70 audit allows service providers to obtain independent assurance on their business processes. Two types of audit reports are involved in a SAS 70 review. Type I and Type II. Today, I am discussing what a SAS 70 Type I review and report involves.

A Type I SAS 70 report describes the service organizations description of controls at a specific point in time. Say 31st December 2006. In short, a Type I SAS 70 report expresses an opinion whether relevant controls had been placed in operation and are designed appropriately to achieve the specified control objectives. A SAS 70 Type I report thus boils down to three important things.

1. Whether Controls had been placed in operation on a specified date.

2. Whether such controls meet control objectives.

3. And finally, that all controls relevant to user organizations internal controls as they relate to the audit of their financial statements have been considered.

Related Posts on SAS 70 >>

Important Definitions on SAS 70 , Designing Control Objectives , Evaluating Control Deficiencies