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SAS 70 Type II Audit

Adhost successfully passed a SAS 70 Type II audit. An independent service auditor examined the policies, procedures and business processes in place at Adhost from July 16, 2008 - July 15, 2009. The auditors spent a week inspecting our facility, learning about our procedures and interviewing Adhost management.

The following controls related to the colocation services provided in our Seattle data centers were audited:

1. Control Environment: Control activities provide reasonable assurance that discipline and structure are a key component of the organization and influence the control consciousness of its personnel. This includes:
    
   • Integrity and ethical values
   • Board of Directors
   • Commitment of competence
   • Management’s philosophy and operating style
   • Organization structure
   • Human resource policies and practices.
    
2. Physical Security: Control activities provide reasonable assurance that business premises and information systems are protected from unauthorized access, damage and interference. This includes:
    
   • General security
   • General physical security multi-tenant building (Fisher Plaza East and West)
   • Data center (Adhost East and West)
    
3. Environmental security: Control activities provide reasonable assurance that critical information technology infrastructure is protected from certain environmental threats. This includes:
    
   • Multi-tenant facility (Fisher Plaza East and West)
   • Data center (Adhost East and West)
    
4. Availability: Control activities provide reasonable assurance that the colocation facility is available and accessible to its customers
    
5. Operations: Control activities provide reasonable assurance that the Operations department identifies and resolves problems affecting the colocation facility or customers in a timely manner.

The examination was performed in accordance with standards established by the American Institute of Certified Public Accountants. Existing Adhost clients, as well as potential clients, can request a copy of the SAS70 audit report by emailing sales@adhost.com.

Why is SAS 70 important to our clients?

Passing the SAS 70 audit benefits Adhost as well as our colocation and dedicated server clients. Many of our clients are institutional organizations and publicly traded companies who must comply with security requirements such as Sarbanex-Oxley. Those clients can use the audit report for their specific security requirements. Benefits include:

• Satisfies many requirements for Sarbanes-Oxley
• Helpful sales tool for our clients to use for their customers
• Useful for start-ups looking for venture capital, which often has security requirements

What is SAS 70?

The American Institute of Certified Public Accountants (AICPA) developed a set of guidelines for evaluating service organizations. These guidelines are called the Statement of Auditing Standards Number 70 (SAS 70). An independent service auditor provides an extensive assessment of the service organizations’ control objectives, safeguards and other activities. Their audit report is called a SAS 70 report.

A SAS 70 report is beneficial to both to both the service organization and its clients because it demonstrates that the service organization has implemented effective control objects and activities. The SAS 70 report can aid the service organizations’ clients in completing their own financial audits.

In the hosting and colocation industries, the SAS 70 report is important for companies who are relying more and more on outsourced hosting and colocation services. The SAS 70 report allows hosting and colocation companies to complete one report that all of their clients can use.

Learn more about SAS 70 at Wikipedia.