âOrganizations looking to outsource the critical function of providing independent valuations of their financial products, including derivatives and securities, should require third-party reviews to be performed on their service providerâs internal controls,â said John Trefethen, chief financial officer of DerivActiv, LLC. âDerivActiv customers can be assured that with the completion of our SAS 70 audit, our valuation service continues to be consistent, stable and secure.â
Many companies and their auditors, especially financial services and other highly regulated organizations, require credible proof that a third-party provider of information used in financial statements has processes and controls in place for a secure environment for provision of independent valuations. Issued under guidance established by the American Institute of Certified Public Accountants, the SAS 70 report provides assurances regarding specific control and security objectives that DerivActiv has designed. A third-party review of a service providerâs security and operational controls, especially when financial data is involved, is becoming increasingly necessary in todayâs marketplace. Obtaining the SAS 70 certification demonstrates compliance with the standard of due care for security and risk controls and creates an immediate trust between partners and their auditors.