SAS 70 Type II Audit

There’s no doubt that Sarbanes-Oxley and other closely related regulatory changes have altered today’s business terrain. So while your firm is being held to a higher degree of accountability, why should you expect any less of your business partners?

In fact you can expect more, not less, from Broadspire. Not only have we taken the necessary steps to ensure that we have the right internal controls, but we’ve also added supporting and quality assurance processes our business partners and clients can count on.

To provide the highest levels of quality, Broadspire commissioned Tidwell DeWitt LLC to conduct a SAS 70 Type II Audit. In the 2006 issue of Inside Public Accounting, Tidwell DeWitt LLC was recognized as the Seventh Fastest Growing Accounting Firm in the country; the company has built a strong and reputable practice in both the private and public arenas. Tidwell DeWitt LLC is a prominent member of the International Group of Accounting Firms Worldwide (IGAF) as well as a registered Public Company Accounting

SAS 70 Type II Audit

Statement on Auditing Standards (SAS) No. 70, Service Organizations, is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). A SAS 70 audit or service auditor’s examination is widely recognized because it represents that a service organization has been through an in-depth audit regarding control activities, which generally include controls over information technology and related processes. Broadspire’s SAS 70 Audit examined and analyzed controls pertaining to information technology and related processes.

There are two types of SAS 70 audits. In a Type I report, the service organization provides a description of its controls. During the audit, the service auditor evaluates the accuracy of that description and whether controls were suitably designed to achieve specified control objectives. A Type II report includes the information from a Type I report, as well as analysis and results of detailed tests conducted on the service organization’s controls over a period of at least six months.

Claim File Quality Audit Versus SAS 70 Type II Audit

It’s important to understand that a SAS 70 Type II Audit is distinctly different from Broadspire’s unique internal Claim File Quality Audits. A Claim File Quality Audit focuses on claim file handling, while the SAS 70 Type II focuses on company controls (both in the claim file handling process and support of the process). Both types of audits are important and complement each other, thereby enhancing the overall delivery of the claims product. An overview of their differences is outlined in the chart below.

Taking the SAS 70 Audit to the Next Level

At Broadspire, we didn’t settle for just a SAS 70 Type I audit. In fact, our comprehensive SAS 70 Type II audit is even more detailed and thorough than your standard SAS 70 Type II. We audited not only nine core claim handling controls, but also controls in seven areas supporting our claims management process. Because we are committed to providing excellent service, we carefully examined key areas of our claims process.

For more information, please download our SAS 70 Type II Audit brochure. For the complete SAS 70 Type II Audit report, contact us.