Module 3 Regulations and Frameworks Flashcards
what does GLB stand for
Gramm-Leach Bliley
what is Gramm-leach Bliley
- also known as the Financial Modernization Act of 1999
- a federal law enacted in the United States to control the ways financial institutions deal with the private information of individuals
what is NERC
*The North American Electric Reliability Council (NERC)
* Cybersecurity Standards requires
power utilities to assess and enhance their security environments.
what is NERC commonly referred to as
- Critical Infrastructure Protection (CIP) standards 002 through 009
why did Sarbanes-Oxley act of 2002 come about
- In the wake of Enron and WorldCom accounting debacles came the SarbanesOxley Act of 2002 (SOX)
- Probably the most wide-ranging legislation to affect publicly traded
companies since the Securities Exchange Act of 1934.
core objectives of sarbanes oxley
- to restore investor confidence in the financial reporting of
public companies. - SOX holds a company’s officers personally responsible for misrepresentation
of financial data. - A corporate officer who knowingly signs a false financial report can be fined
up to $1 million and be sentenced as many as 10 years in prison
what does SOX mean, and when was it created
sarbanes-oxley act of 2002
Key Titles and Sections of the SOX legislation include:
Title I: Public Company Accounting Oversight Board (PCAOB)
Title II: Auditor Independence
Title III: Corporate Responsibility
➢ Section 302: Corporate Responsibility for Financial Reports
Title IV: Enhanced Financial Disclosures
➢ Section 404: Management Assessment of Internal Controls
➢ Section 409: Real time Issuer Disclosures
what is an acceptable framework to define internal controls for financial reporting systems
COSO
what can COSO also be used to assess other than financial controls
IT controls
what does COSO stand for
committee of sponsoring organizations
what does the federal trade commission (FTC) do
Working to protect consumers by preventing anticompetitive, deceptive, and unfair business practices, enhancing informed consumer choice and public understanding of the competitive process, and accomplishing this without unduly burdening legitimate business activity
3 strategic goals of FTC
- protect consumers
- maintain competition
- advance organizationsal performance
what is the accrediting organization for soc auditors
- AICPA
- American Institute of Certified Public Accountants
you have to be a licensed what to perform SOC audits
licensed CPA firm or agency
