What are the basic provisions of the Sarbanes-Oxley Act and the USA Patriot Act? What effects are these pieces of legislation having on information security? What measures have businesses implemented to ensure they are in compliance?
The Sarbanes-Oxley Act of 2002, sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley, represents the biggest change to federal securities laws in a long time. [ [ It came as a result of the large corporate financial scandals involving Enron, Global Crossing, Arthur Andersen, Tyco International, Peregrine Systems and WorldCom (recently MCI and now currently
part of Verizon Business). The Sarbanes-Oxley requires all publicly-traded companies to submit an annual report of the effectiveness of their internal accounting controls to the SEC. This includes the effectiveness of how they monitor the activities of their broker dealer activities as well. Provisions of the Sarbanes Oxley Act (SOX) detail criminal and civil penalties for noncompliance, certification of internal auditing, and increased financial disclosure. It affects public U.S. companies and non-U.S. companies with a U.S. presence. Sarbanes-Oxley is all about corporate governance and financial disclosure. ] ]
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