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 audit report is relevant or useful. Can you explain what this means?
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