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Why Would a Service Organization Choose to Hire an Accountant

question 6

Essay

Why would a service organization choose to hire an accountant to perform a SAS 70 engagement and issue a report? Would the clients of the service organization
(in other words, the user organizations) want the service organization to provide a
SAS 70 report? Why or why not? What might the service organization consider when
it contracts for a SAS 70 engagement to make the resulting report the most useful
for user organizations and their auditors?


Definitions:

Promisor

The person who makes a promise or agreement to do something, especially in a contract.

Promisee

The person to whom a promise is made in a contract, who stands to benefit from its fulfillment.

Offeror

The party in a contract negotiation that proposes the terms of an agreement to another party, known as the offeree.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states.

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