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Shrinath, senior information security auditor at SunGardMy organization has undergone SAS 70 audits for the last 3 years. For the first year it was definitely challenging to know all about it and its testing procedures. It is definitely one of the most stringent audits because of the number of evidence samples picked up for testing and any failure in a single one of them can result in control failure unless you have very good compensating controls for it. For us, it has helped to tighten the process lapses and increase the operating effectiveness of the controls.
Read more about it audit in CSOonline's IT Audit section.