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July 2006 | Volume V, Issue 7 | Editor: David Wise |
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Understanding a SAS 70 Audit – Part 2The SAS 70 is not a financial audit. It is an in-depth analysis of your company’s established procedures to manage, maintain and protect the valuable assets of their clients, including not only physical assets, but informational assets like bank account numbers, personal health information, and employment records. A SAS 70 looks at the operations of your company to see if reasonable security measures are in place to protect the information from internal and external intruders. In the world of benefit administration, all Third Party Administrators (TPA) deal with sensitive data on a daily basis. A properly executed SAS 70 will examine internal processes to ensure the appropriate checks & balances are in place. For instance, do your claim entry personnel have access to payment processing or employee demographic information? Do you use the same employee to process payments and reconcile the bank account statements? Have you established Positive Pay parameters with your financial institution to eliminate forged checks from clearing your account? These are just a few of the processes that a qualified auditor will review and test to ensure an acceptable level of process management is in place. You may be asking yourself how an in-depth technical / procedural audit can help your business. Market Differentiation is the answer. Many companies find the process of auditing brings out the strengths and weaknesses of their operations, and they become more efficient and more confident in their business by addressing these points. It should be important to a prospective employer client to have the assurance that their financial and personal information is protected and secure. In the August newsletter, we will have an interview with Joe Maddox, CPA. P.A, who has performed numerous SAS 70 Audits and will be a featured speaker at the Connections ’06 DataPath Annual Conference. | |
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