Jul 29 2008   11:16AM GMT

What NOT to call SAS 70 Reports

Arian Eigen Heald Arian Eigen Heald Profile: Arian Eigen Heald

I ran across the new website “” in my travels, and was reminded that it is so important to be able to laugh at yourself (and others!). It’s so easy to turn a Bad Idea into Bad Technology, these days. Or worse, another new acronym.

You should especially check out the rant on InfoSEC SPEEK that had me ROTFL. (Are “old” acronyms still OK? Or just old?) Between the hackers, the vendors, and our own pretentiousness, don’t we really have to wonder how anything really gets secured?

For example, following up my previous posts about SAS 70 audit reports:

“SAS-70 Certified” (They obviously haven’t read their own report. Maybe that’s a good thing for the rest of us.) I went to Google, just for fun, and searched on the topic after seeing one such statement in an RFP (Request for Proposal). There are an astounding number of responses for businesses that are listing themselves that way. Has no one ever told these folks that there is no such certification???

“CompanyName participates in an annual audit performed by an independent accounting and auditing firm and receives confirmation of our continued compliance with SAS 70 standards.” What standards? What compliance? It’s their own controls that were tested. Where are they getting this stuff? It’s almost painful to read.

Or, in a total munge of regulations:

“AnotherCompany, a premier provider of back office, accounts receivables and financial services announced that it has received full SAS 70 certification. This fulfills Section 404 of Sarbanes-Oxley, the corporate governance accounting mandate.” Wrong added to more wrong. SOX is not a mandate, a SAS 70 audit does not fulfill Section 404, and it’s still not a certification.

Then there’s the businesses that market themselves as having “passed” or “earned” a SAS 70. Writing your own test and passing it – Wow. What an accomplishment! For our sakes, I hope it was an “A” grade and not a “C.”

BAD marketer. BAD.

It also calls into question the quality of the organization. I don’t know about you, but reading that sort of publicity announcement from a Data Center would make me really nervous about putting my data there. And if you search those terms together on Google, there seems to be an embarrassing number (more than zero) of “Data Centers” that are doing just that.

The same feeling would apply for outsourcing my financial processes with the accounts receivable/financial services people. Some medical benefits administrators have “passed” and “earned,” too.

And it’s REALLY embarrassing when a public accounting firm offers such a “certification.”

Ouch. It hurts when I laugh.

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