Statement on Auditing Standards No. 70: Service Organizations

And one of the things that really kind of irritates me.

The SOC 2, so the SSAE 16 SOC 2 audit that was released by the AICPA years ago, it replaced something called a SAS 70.

The SAS 70 had all kinds of holes in it as far as assurance.

The SSAE 16 SOC 2 was supposed to fix all of that.

But it didn't.

Well, you know, the predecessors to SOC 2, I mean, SOC 2 itself has been around less than 20 years, let's say.

But as Graham knows, being in the business back in the day, we had SAS 70 and maybe some things before that.

So it's been 20 or 30 years on doing audits, you know, like this.

And, you know, in the CPA profession, if you look at the history of audits and probably why SOC 2s are sort of necessary, it's coming from the lineage of doing financial audits where a company puts forth, in the case of financial audit, a set of financial statements, an independent person validates that.