May 08 - PMWT - PM Tips Article - A Finch - SAS70 Audit - FINAL

Published in PM World Today - May 2008 (Vol. X, Issue V) PM WORLD TODAY – PM TIPS & TECHNIQUES – MAY 2008 Managing Your Company’s SAS 70 Audit By Amanda Finch SAS 70 audits are a relatively new business mandate, but they are coming on strong and fast. If your company provides services to publicly-traded companies (including software-as-a-service), chances are customers and prospects have already begun to ask for your SAS 70 audit report. Companies providing services such as payroll processing, benefits administration, and claims processing, as well as application service providers, are facing the need for a SAS 70 audit. SAS 70 audits significantly impact your company’s operations and market position; hence, they require careful management. This article will briefly describe what SAS 70 audits are, who needs to undergo them, and why. It will make the case for good project management of the audit process. It will also describe the basic phases and activities of the audit process, from beginning to end. Why You May Need to be Audited The Sarbanes-Oxley (SOX) Act holds officers of publicly-traded companies responsible for the fairness and completeness of their company’s financial statements. The quality of these statements depends on a company’s internal controls—processes designed to meet objectives for financial reporting reliability, operational effectiveness and efficiency, and compliance with applicable laws and ...