Organizational Controls...

Once the customer data is secure and the computer network facility is in place to insure non-stop operation, the operational controls within the corporation must be in place to protect the integrity of account information and protect sensitive customer information.

The Statement on Auditing Standards No 70 (SAS 70) is widely recognized, because it represents that a service organization has been through an in-depth audit of their control objectives and control activities, which often include controls over information technology and related processes. In today's global economy, service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their customers. In addition, the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 make SAS 70 audit reports even more important to the process of reporting on the effectiveness of internal control over financial reporting.