Which two answers describe provisions of the SOX Act and its international counterpart Acts? (Choose two.)
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A. B. C. D. E. F.BD.
The Sarbanes-Oxley (SOX) Act is a United States federal law passed in 2002 that aims to protect investors by improving the accuracy and reliability of corporate disclosures. It was enacted in response to a series of corporate accounting scandals, including Enron and WorldCom, that shook the financial markets and eroded public confidence in the integrity of corporate America.
The provisions of the SOX Act and its international counterparts Acts are as follows:
A. Confidentiality and integrity of customer records and credit card information: The SOX Act requires companies to protect the confidentiality and integrity of customer records and credit card information. This includes implementing security measures such as firewalls, encryption, and access controls to prevent unauthorized access to sensitive information.
C. Financial information handled by entities such as banks, and mortgage and insurance brokers: The SOX Act applies to all publicly traded companies in the United States, as well as any non-U.S. companies that have securities listed on U.S. stock exchanges. It requires these companies to maintain accurate and complete financial records and to implement internal controls to ensure the accuracy of their financial reporting.
B. Accountability in the event of corporate fraud: The SOX Act imposes criminal penalties, including fines and imprisonment, for corporate fraud. It also requires companies to establish codes of ethics and to provide protections for whistleblowers who report corporate misconduct.
D. Assurance of the accuracy of financial records: The SOX Act requires companies to implement internal controls over financial reporting and to conduct regular audits to ensure the accuracy of their financial records. It also requires companies to disclose any material weaknesses in their internal controls.
E. US Federal government information: The SOX Act does not specifically address US Federal government information, as this falls under the purview of other laws and regulations, such as the Federal Information Security Management Act (FISMA).
F. Security standards that protect healthcare patient data: The SOX Act does not specifically address security standards that protect healthcare patient data, as this falls under the purview of other laws and regulations, such as the Health Insurance Portability and Accountability Act (HIPAA).
In summary, provisions of the SOX Act and its international counterparts Acts include protecting the confidentiality and integrity of customer records and credit card information, ensuring the accuracy of financial records, promoting accountability in the event of corporate fraud, and requiring companies to implement internal controls and conduct regular audits to ensure compliance with the law.