Regulations And Standards Of The Sarbanes Oxley Act

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Applicable Regulations and Standards Financial Institutions like Bank Solutions Inc. are required to meet the standards regulated by the government to avoid mismanagement of sensitive information. These regulations are solely purposed to mandate financial institutions to protect confidentiality, availability and integrity of individuals, information systems and processes. Some of the applicable regulations and standards are elaborated below: 1. The Sarbanes-Oxley Act “The Sarbanes-Oxley Act of 2002 is legislation passed by the U.S. Congress to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures”(Rouse, n.d.). This act was implemented by the government to avoid financial disgraces which occurred due to lack of proper storage of business records including electronic records and electronic messages. This act requires financial institutions to store audit trail of log files and other financial documentation either paper or electronic versions for five years. It is very important the IT department of any organization to securely store data for audit purpose to avoid huge penalties and even imprisonment. Backup is also an important aspect as this act requires financial institution to have data available for past five years. 2. The Gramm-Leach-Bliley Act “The Financial Services Modernization Act of 1999, better known as the Gramm-Leach-Bliley Act (GLBA), protects the

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