SAS 70 | Cost Factors for Type I and Type II Pricing of Audits
| posted by charles denyerBecause of the enormous significance that SAS 70 Type I and Type II audits have been given in recent years, it's important to gain a thorough understanding of cost factors when seeking a Certified Public Accounting (CPA) firm to conduct the audit for you. Fortunately, there are a handful of select auditors around the country who excel a this type of audit, with many boutique shops surfacing. Unfortunately, pricing is all over the board, depending on who that provider is. A smaller firm, such as a one man sole practitioner is without question the least expensive, while the traditional big four accounting firms charge the most. Somewhere in the middle lies the sweet spot, the national and regional boutique firms who specialize in statement on auditing standards no. 70, have a dedicated staff for this type of work, and are a cost-effective alternative to the big four.
The problem with many smaller, one or two man CPA firms is that they traditionally lack the expertise and they also lack the "street cred" for issuing a report. Likewise, the issue with the large, big four and other national firms is their price, their inability to jump onto an audit engagement quickly, along with dealing with the bureaucratic red tape of the audit process with them.
So, what service organizations expect to pay for SAS 70 Type I and Type II Audits. You can read more on SAS 70 pricing if you choose, but what's important to note is that the cheapest and the most expensive have obvious drawbacks, while the healthy "in the middle" CPA firms do an excellent job regarding fair pricing, good name recognition, a quality and dedicated staff for SAS 70 Type I and Type II audits.
On a lighter node, if you are interested in viewing an actual SAS 70 Type II Service Auditor's report in its entirety, you can download a sample sas 70 and review it in detail.
