Changes To SAS 70
The AICPA had proposed changes that would move the guidance for Service Auditors to the Statements on Standards for Attestation Engagements (SSAE), naming the standard Reporting on Controls at a Service Organization. The guidance for User Auditors would remain in AU section 324 (codified location of SAS 70) but would be renamed Audit Considerations Relating to an Entity Using a Service Organization.
Service Auditors to the Statements on Standards for Attestation Engagements No. 16 (SSAE 16) was formally issued in June 2010 and became effective on 15 June 2011. SSAE 16 reports (also known as "SOC 1" reports), which have effectively replaced SAS 70 reports, will be prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization. SOC 1 reports retain the original purpose of SAS 70 by providing a means of reporting on the system of internal control for purposes of complying with internal control over financial reporting.
Read more about this topic: Statement On Auditing Standards No. 70: Service Organizations