Do you know how data backup services can play a key role in making data compliance easier for your banking organization? There have been several changes in the banking industry, and with these new changes come a lot of headaches. Not only are there more responsibilities for CEO’s of banks, but the penalties for not complying with the data regulations and guidelines are stiff. Let’s have a look at what’s going on as far as data compliance is concerned and how the data regulations have affected your organization.
Data Backup Services & the Sarbanes-Oxley Act
Some people call this the Corporate and Auditing Accountability & Responsibility Act, while others call it the Public Company Accounting Reform and Investor Protection Act. Some even call it Sarbox or SOX. It was named after United States Representative Michael G. Oxley and United States Senator Paul Sarbanes. The Sarbanes-Oxley Act was set forth in 2002 to raise the standards for all public companies in the United States, including accounting firms. This was the result after numerous corporate scandals happened that involved corporate giants such as, WorldCom, Peregrine Systems, Adelphia, Tyco International, and Enron. These were huge scandals that cost many investors billions of dollars after the companies fell apart. It turned the entire securities market on its head and consumer confidence dwindled. As a result, stricter measures have been legislated to ensure proper data auditing and data regulations, in order to prevent this from happening again.
The Sarbanes-Oxley Act of 2002 has eleven titles involving data regulations that include corporate management responsibilities and criminal penalties. This act also mandates that the Securities and Exchange Commission take the rulings and comply with these new laws of data compliance and data regulations.
Harvey Pitt, twenty-sixth chairman of the Securities and Exchange Commission took the rules of data regulations, and implemented them by creating a separate public agency known as Public Company Accounting Oversight Board. This board regulates all of the data auditing processes and ensures proper data compliance with all public companies involved.
There has been some strong controversy with the Sarbanes-Oxley Act of 2002 and all of the data compliance rules. Those in support of the laws hold that it was necessary in helping to restore consumer trust in the capital markets. They also claim that it has greatly improved the trust of fund managers and investors in regards to the truthfulness of the corporation’s financial statements. Those who are opposed to the data auditing and the SOX Act, stated that it has decreased the United States’ international competitive edge, due to the sophisticated regulations. Just how important is data compliance?
There are 2 main sections that go into detail about the requirements for financial reports:
1. PCAOB - Public Company Accounting Oversight Board is part of the first section of the data regulations. There are nine separate sections within this section that are created to oversee the auditing practices of accounting firms. It registers auditors and then defines the required procedures that will be used within compliance with the mandates of the Sarbanes-Oxley Act of 2002. It also is involved with inspecting the previous methods used by the accounting firms and assurance of quality control.
2. Auditor Independence - This section outlines the standards for data auditing and auditor independence. It details the approval requirements for new auditors, auditor reporting policies, and audit partner rotation. There is also a restriction placed on auditing companies that prevents them from being able to provide non-audit services for the same base of customers.
These are just two of the 11 sections mentioned and it is important that all employees that will play a key role in data auditing need to be fully and thoroughly familiar with the laws and compliance guide lines. Of course, one could get completely lost in dealing with all the data auditing rules, laws and regulations, let alone implementing them on a day to day basis. That’s where data backup services can help.
How Data Backup Services Can Help
Online data backup services are built around your software needs. They typically run about once or twice a day, usually very early in the morning before the work day stars or late at night when no one’s in the office. The data backup services collect all important data and then transfer it to the service provider’s remote backup system.
Don’t risk getting into trouble with all of the confusing data auditing laws and regulations. Be sure to backup and save any and all data, so that you can rest easy. There are many data backup services providers, and the beautiful thing about it is that you do not have to buy additional hardware or hire additional employees. You can outsource the job to a data backup services company that will take care of everything for you and rest easy, knowing you are within normal limits for the new data compliance laws.