Signing on to changing requirements
Service auditor engagements have become increasingly prevalent in the marketplace since the issuance of Statements on Auditing Standards No. 70, Service Organizations (SAS 70), in 1992. Yet companies should not get too comfortable: management’s responsibilities in such engagements, and how a service auditor performs the engagement, will change in the near future.
The International Auditing and Assurance Standards Board (IAASB) issued a new international standard for engagements to report on controls at service organizations. At the same time, the American Institute of Certified Public Accountants (AICPA) also redrafted SAS 70.
Deloitte's publications "Service organisations: Signing on to changing requirements" briefly discusses the new standard (ISAE 3402) issued by the International Auditing and Assurance Standards Board (IAASB), provides an overview of the revisions to SAS 70 and focuses on the principal differences between the U.S. standard and the International standard.