SAS 70 is Frequently Required of Order Fulfillment Vendors

What is SAS 70?
Statement on Auditing Standard No.70 (SAS 70) is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA) in 1992. It is used to report on the "processing of transactions by service organizations". For example, Rush Order's SAS 70 certification confirms our "reporting on controls placed in operation".

Why is SAS 70 certification important to me?
The SAS 70 audit has become the "de facto due diligence document" throughout the United States and the world with regard to an organization's internal controls that potentially impact financial reporting.

The importance of the SAS 70 primarily stems from a growing surge of legislation, most notably, the Sarbanes-Oxley Act of 2002, otherwise known as "SOX". The SOX rulings advocate protection of privacy, corporate accountability, and establishment of internal controls throughout an organization.

Thus, a need was created in many industries for a due diligence process that can aggregate many of the principles found within this act. It also provides companies with a high level of assurance and confidence when using service organizations such as Rush Order for outsourcing critical business functions. The SAS 70 was created as an audit process to ensure data integrity and all related transactions amongst service organizations.

In a post 9/11, SOX world, there is a large movement in the global business culture that places enormous merit on quality data, as well as safe and secure IT transactions. Because such a heavy reliance is placed on computer systems, organizations are compelled to ensure that data and all related processes and procedures are safe and secure. It also ensures that IT controls are operating as designed in an effective manner.

For a publicly held company, requiring SAS 70 audits of its service providers is becoming increasingly mandatory. In the past, the impact of many business functions and service providers on financial reporting could potentially be deemed immaterial, provided that such a service accounted for a small fraction of the company's financials. With the inception of Sarbanes-Oxley, the global consensus is that all data is material, regardless of the size and scope of the service provider's impact on financials. In-depth due diligence on the infrastructure and internal controls of service organizations, such as those measured by a SAS 70 audit, is now essential.

For privately held companies, the need for cost effective due diligence is often just as important. From the very beginning of a partnership with a SAS 70 certified service provider, the private organization can make promises to its stakeholders and its customers that many of its competitors cannot. It also assures the private company that they have partnered with a firm that is fully capable of meeting the rigorous standards required by public filings. In other words, private firms can leverage the safe, secure, and efficient systems that are certified to exist by a SAS 70 report.

Ultimately, user organizations (both public and private) are able to gain a greater understanding and assurance of the internal controls in place at a service organization such as Rush Order. SAS 70 certification is a formal confirmation of Rush Order's proactive steps in developing and implementing numerous controls used to process transactions on behalf of our clients. Furthermore, SAS 70 reports assist external auditors for user organizations by cutting the time and costs of launching inquiries into the controls at service organizations such as Rush Order.

For more information on SAS 70, or to obtain a copy of Rush Order's actual SAS 70 report, simply email Rush Order or call me at 800-522-5939.