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What is a SAS 70?

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We are a small software provider and a prospect is asking us to provide a SAS 70 report or equivalent information about our information security.
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SAS 70 refers to an auditing standard developed by AICPA for reviewing a service organization's control activities and processes (with particular focus on customer data protection). Most likely, your prospect is referring to a SAS 70 audit report, which would provide the independent opinion of your auditor's on your control processes.