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The Sarbanes-Oxley Act of 2002 and its Impact on IT Security

The Sarbanes-Oxley Act of 2002 and its Impact on IT Security

by Rick Turoczy on September 15, 2005

In order to comply with the Sarbanes-Oxley Act of 2002, the chief executive officer (CEO) and the chief financial officer (CFO) of all publicly traded companies registered with the U.S. Securities and Exchange Commission (SEC) must attest to their companies’ “internal controls” and personally validate the accuracy of its financial records. If the CEO or CFO is aware of any reason why the financial data may not be 100% correct and chooses not to disclose that information, then he/she may be convicted of regulatory wrong-doing and subject to penalties including personal fines and prison time. Since the possible penalties personally affect the CEO and CFO, there is added incentive for them to be highly attentive to corporate audits designed to ensure financial accuracy.

Since IT systems are used to generate, change, house, and transport financial data, corporations have to build the controls that ensure the information stands up to audit scrutiny. To do this IT departments have to establish security infrastructures that ensure the security of financial data and applications while providing detailed reporting for auditors.

This paper will focus on the sections of Sarbanes-Oxley that relate to system security and the role Apani Networks plays in ensuring that key systems that house financial data are in full compliance with Sarbanes-Oxley regulatory requirements.

The Sarbanes-Oxley Act of 2002 and its Impact on IT Security

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