The SAS 70 Type II report includes three required sections: the auditor’s opinion, the service organization’s description of controls, and tests of operating system effectiveness and the results of those tests. The report may also include an additional section with other information provided by the service organization (provided for informational purposes but not subject to audit).
The following is example SAS 70 Type II audit opinion text for a scenario in which the service organization achieves the specified control objectives. The opinion would be modified to suit the circumstances of the specific audit.
<On Audit Firm Letterhead>
To XYZ Service Organization:
We have examined the accompanying description of controls related to the ABC application of XYZ Service Organization. Our examination included procedures to obtain reasonable assurance about whether (1) the accompanying description presents fairly, in all material respects, the aspects of XYZ Service Organization’s controls that may be relevant to a user organization’s internal control as it relates to an audit of financial statements, (2) the controls included in the description were suitably designed to achieve the control objectives specified in the description, if those controls were complied with satisfactorily, and (3) such controls had been placed in operation as of <Date2>. The control objectives were specified by XYZ. Our examination ...