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Telehouse Successfully Completes SAS 70.
2006-03-02, HostMan.biz Telehouse America, the leading provider of high-level data center and collocation facilities, international internet exchanges, and business continuity and disaster recovery solutions announces its recent completion of a service auditor's review, also known as an SAS 70 audit, of its data center and collocation services. The audit, performed by a nationally recognized independent auditing firm, was completed in January 2006. The audit's scope included Telehouse's general controls and 24x7 customer assistance center. SAS 70 is an acronym for the American Institute of Certified Public Accountants (AICPA) Statement on Auditing Standard (SAS) No. 70, titled "Reports on the Processing of Transactions by Service Organizations." 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 auditor's report. In order to complete the audit, Telehouse management developed control objectives for the significant areas of internal control that support the data center and collocation services. The control objectives in the 2006 report addressed the areas pertaining to Control Environment, Physical Security, Environmental Protection, Computer Operations, Data Communications and Customer Assistance Center. Telehouse's service auditor performed extensive testing of the control activities that have been implemented by TELEHOUSE to help ensure that our control objectives are met. The service auditor's testing allowed the service auditor to express its opinions relating to several areas. First was whether the description of the controls prepared by Telehouse presented fairly, in all material respects, the relevant aspects of Telehouse's controls that had been placed in operation as of January 20, 2006. Second was whether the controls were suitably designed to provide reasonable assurance that the specified control objectives would be achieved if those controls were complied with satisfactorily; and lastly, was whether the controls that were tested were operating with sufficient effectiveness to provide reasonable assurance that the control objectives were achieved during the review period of July 1, 2005, to January 20, 2006. Following this rigorous examination, the auditing firm was able to issue an unqualified opinion regarding each of the areas described above. Telehouse management recognizes that Sarbanes-Oxley legislation has placed an increased focus on the internal controls of valued business partners. The SAS 70 audit report is designed to provide clients with a certain level of assurance regarding the controls that are maintained by Telehouse management. The SAS 70 report addresses all five components of internal control outlined in the Sarbanes-Oxley legislation, namely the control environment, risk assessment activities, control activities, information and communication systems, and monitoring activities. The structure of our report is intuitive and is designed to be incorporated well with our clients' Sarbanes-Oxley compliance programs. Additionally, Telehouse's management understands the ever increasing importance of corporate governance, as well as the impact of the organization's services on our clients' system of internal controls. The successful completion of the 2006 SAS 70 audit is only part of Telehouse's continued commitment to maintaining a high level of internal control. Telehouse will also engage its preferred service auditor on an annual basis and will undergo a Type II audit. "The SAS 70 qualification has become a required evaluation benchmark sought by clients in their business continuity provider," said Atsushi Iizuka, Vice President - Director of Sales and Marketing at Telehouse. "Our ability to offer this prerequisite is another example of our dedication to providing clients with high level facilities and support." |
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