Question

What acts of financial security could apply to Afri-Wire (such as Sarbanes-Oxley)? List and explain each applicable acts and describe how it could be used to support your audit.

Answer 1

1) Sarbanes oxley Act:

Governed by Securities & Exchange commission who prescribes the provisions and requirements for the auditors

section 302 is intended to safeguard against faulty financial reporting.

As part of this section, companies must safeguard their data responsibly so as to ensure that financial reports are not based upon faulty data, tampered data, or data that may be highly inaccurate.

section 404 requires the safeguards stated in Section 302 to be externally verifiable by independent auditors, so that independent auditors may disclose to shareholders and the public possible security breaches that affect company finances. Specifically, this section guarantees that the security of data cannot be hidden from auditors, and security breaches must be reported.

Gramm Leach Bliley Act (GLB) Act:

Act provides security of Customers financial information with the financial institutions and laid down the rules like financial privacy rule - by sending privacy notices to customers providing data relating to information sharing collection and practices followed by the financial institutions and should design and implement controls to maintain confidentiality and safeguard of customer financial information

Auditor has to oversee the Corporate has the established the system in practice in relation to design,implementation of safeguarding rules and check the compliances of provisions in act

Fair and Accurate Credit Transaction Act:

This act contains provisions majorly in relation to identify the Redflags prevailing in the corporates which requires the corpoarates to introduce the programs for early identification of theft, frauds so that to mitigate the financial impact on the organisation by detecting the fraud at initial stage and laid the provisions steps to be taken after detection of redflags by reporting to legal department

Federal Information Security Act:

This act frequires the organisation to introduce effective security programs which contains Policies and procedures based on these assessments that cost-effectively reduce information security risk and ensure security is addressed throughout the life cycle of each information system,conducting Security awareness training to employess and periodically verifying the effectiveness of information security program and the process to address the deficiencies exist to reach efficiency in Information Security