Paragon Strategic Solutions Inc., a member company of Benfield, the worldâs leading independent reinsurance and risk intermediary, today announced its Asset Recovery division has achieved an unqualified Statement on Auditing Standards No. 70 (SAS-70), âReports on the Processing of Transactions by Service Organizationsâ, for its Account Receivable services. SAS No. 70 defines the professional standards used by a service auditor to assess the internal controls of a service organization and issue a service auditorâs report.
Publicly held companies are required by the Security Exchange Commission and Sarbanes-Oxley (SOX) Act of 2002 to prove that they have controls in place to ensure a secure environment for data, including information that is shared with third-party service providers. The SAS-70 report addresses all five components of internal control outlined in the SOX legislation, including the control environment, risk assessment activities, control activities, information and communication systems, and monitoring activities. The auditorâs review demonstrates that Paragon Asset Recovery can protect data in both physical and online environments, assuring customers their data is safe.
âThis is another major step in our efforts to deliver operational excellence, and it demonstrates our commitment to the data-security needs of our customers,â said Mike OâLoughlin, President of Paragon Asset Recovery. âThis best-practices verification ensures our customers that our data systems and outsourcing environment are secure and will meet the expectations of their internal and external auditors.â
In order to complete the audit, Paragon management developed control objectives for the significant areas of internal control that support its Account Receivable services. The control objectives in the 2006 report addressed the areas of Control Environment, Physical Security, Environmental Protection, Information Security, Application Development and Maintenance, Computer Operations, and Data Communications.
The independent Service Auditors Report (Type I), performed by Florida-based SAS 70 Solutions, Inc., found Paragon Asset Recoveryâs processes and systems are well documented, organized, and properly controlled to meet SAS-70 requirements. The auditor's report was issued through the standards and guidance established by the American Institute of Certified Public Accountants (AICPA), which puts the highest scrutiny on a companyâs controls and processes.