Who is required to comply?
All publicly traded companies are required to comply, along with associated attorneys and business partners. Sarbanes-Oxley has also set an e-records management standard for all business to attain to.
What is it?
The Enron and WorldCom scandals redefined electronic record management legislation globally. Sarbanes-Oxley was implemented in 2002 and legislates how business records are protected and preserved to prevent destruction and corruption. Further, SOX, as it is commonly referred to, enforces corporate accountability particularly in the face of audit and litigation requests.
What are the requirements?
Sarbanes-Oxley mandates that all electronic records, audit work papers and correspondence be retained for a period of seven years. Further, tamper proof resources are required to prevent corruption and modification of records.
What is the cost of non-compliance?
Heavy fines, up to 20 years imprisonment and loss of company reputation.
What is the significance of Sarbanes-Oxley compliance?
The rule is designed to protect investors from fraudulent activity and safeguard financial data. All public companies are responsible to implement and practice dependable record management policies that allow for disclosure of information and transparency of business practices.