You are the independent auditor for Towson, Inc. Towsons CFO, Richard Moore, contacts you for information. Towsons

Question:

You are the independent auditor for Towson, Inc. Towson’s CFO, Richard Moore, contacts you for information. Towson’s audit committee has requested that he present a report on benefits of obtaining services from a company who will supply a SAS 70 report versus a company who has achieved ISO 9000 certification for quality management. In preparing his report, Richard Moore has provided you with the following two questions.

Required:
(1) Moore would like to know the elements that you would compare between the two options.
(2) More has heard that the PCAOB has not established any “bright lines” around when a SAS 70 is relevant or useful. Can you explain what this means?

Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...