BlackLine Systems 1st To Achieve SAS 70 Type II Certification for Financial Close, Account Reconciliation Software

Calabasas, Calif. – Feb. 2, 2010BlackLine Systems has become the first provider of financial close and balance sheet account reconciliation software to achieve the Statement on Auditing Standards No. 70 (SAS 70) Type II certification – the highest regarded, defining set of guidelines for the auditing and accounting communities.
The successful completion of the audit, performed by independent auditor Moss Adams LLP, recognizes the company’s adherence to the rigorous requirements for the security and reliability of its flagship financial close Software-as-a-Service (SaaS) suite.

SAS 70 is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA), which sets standards for auditors to use in order to objectively assess the internal controls of service organizations. A key determination for SAS 70 certification is that a third-party auditor deems the organization has the appropriate controls in place for safeguarding its customers’ data – this is increasingly important as more companies move to a SaaS solution where sensitive corporate software is hosted and controlled by third parties.

A SAS 70 Type II audit assesses the operational effectiveness of internal controls within a service organization. After a stringent review of BlackLine’s infrastructure, corporate governance and information security management policies, Moss Adams confirmed that the control and procedural objectives specified by BlackLine were verified and tested and met all requirements. Moss Adams also confirmed that not only are the appropriate policies in place at BlackLine, but that the controls that were tested are up and operating with sufficient effectiveness to provide reasonable assurance that the company’s objectives were achieved.

“As a provider of IT hosting solutions to more than 70,000 customers including BlackLine Systems, we understand the importance of providing customers with a SAS 70 Type II report. Providing an in-depth audit of control objectives and control activities by a qualified third party auditor helps assure customers that the controls are operating effectively and as designed,” said Ed Sachanowicz, Compliance Manager, Rackspace. “As a publicly traded company and BlackLine customer, their SAS 70 Type II report is crucial for us as well, as it provides us with the same type of assurance that we provide our own customers.”

Using a provider that is SAS 70 Type II-certified is especially critical for BlackLine’s large public company customers who have to comply with Sarbanes-Oxley and other reporting regulations.