| Section Number |
Description of
Rule |
How Online
Backup Supports the Rule |
Section 103:
Auditing, Quality Control, And Independence
Standards And Rules
|
Requires the Public Company Accounting
Oversight Board (the “Board”) to establish
certain quality control and ethics standards
to be used by all public accounting firms
registered pursuant to SOX in the
preparation and issuance of audit reports.
Under SOX, only a registered public
accounting firm may prepare or issue any
audit report of any issuer. In connection
with the Board’s obligations under Section
103, the Board must require that all
registered public accounting firms “prepare,
and maintain for a period of not less than 7
years, audit work papers, and other
information related to any audit report, in
sufficient detail to support the conclusions
reached in such report.” |
Online backup supports your efforts to
prepare documents for inspection and audit.
It captures and stores your data to a remote
server where the files are stored securely
and safely until inspection. A backed up
file can remain, indefinitely, on our
servers until it is needed for audit or
inspection. Our remote backup system allows
access only to the correct username/password
combination; the file can be restored to
your local desktop, either via the backup
client or through our Remote Web Access
interface. |
Section 104:
Inspections of Registered Public Accounting
Firms
|
Requires, among other things, the Board
to conduct quality inspections to ensure
compliance with SOX annually for registered
public accounting firms that audit more than
100 issuers per year and at least every
three years for all other firms. The SEC or
the Board may request an impromptu
inspection be conducted by the Board of any
registered public accounting firm at any
time. |
Online gives users on-demand access to
their data. An inspector may access any file
stored to the remote backup system in order
to perform the required inspection.
Additionally, different historical versions
of a file can be restored and inspected to
compare and contrast a document's revisions.
|
Section 105(d):
Investigations And Disciplinary Proceedings;
Reporting of Sanctions
|
Section 105 generally requires the Board
to establish certain procedures for the
investigation and disciplining of registered
public accounting firms (and persons
associated therewith). In particular,
Subsection (b)(5)(a) thereof provides that
all documents prepared or received by the
Board in connection with the inspections
required by Section 104 and proceedings
pursuant to Sec. 105 are regarded as
“confidential and privileged as an
evidentiary matter (and shall not be subject
to civil discovery or other legal process)
in any proceeding in any Federal or State
court or administrative agency . . .unless
and until presented in connection with a
public proceeding or released [in connection
with certain disciplinary procedures].” |
When you use online services to backup
your data, you are using some of the best
encryption and data protection tools
available to maintain complete
confidentiality. From the moment you perform
your first backup, your data is encrypted
using 448 BIT encryption, the strongest
available. The files themselves are
encrypted on your computer before leaving
your office - and remain encrypted until you
access them again. |
Title VIII:
Corporate and Criminal Fraud Accountability
Act of 2002
|
"Knowingly" destroying or creating
documents to "impede, obstruct or influence"
any federal investigation, whether it exists
or is contemplated, is a felony. |
We employ the latest technology
available to prevent unauthorized access to
your data and maintain data continuity. The
data center uses state-of-the-art security
including:
• Halon fire suppression system
• Diesel generator backup power supply
• Full systems redundancy
• Network connections from Tier One
providers
• Biometric controlled facility access
• 24 X 7 on-site systems administration
• Climate controlled environment
• 24 X 7 on-site surveillance |
Section 802:
Mandatory Document Retention
|
Section 802 amends Chapter 73 of title
18, United States Code, by adding certain
criminal penalties for altering documents,
including making it a felony for anyone to
“knowingly” destroy or falsify any documents
in order to “impede, obstruct, or influence”
any federal investigation of any type,
whether existing or contemplated, is a
felony. Violations of this provision will
result in a mandatory fine and may result in
imprisonment (not to exceed 20 years), or
both. |
Our service supports SOX requirements
for mandatory document retention by storing
audit and review work papers for an
indefinite amount of time. The backup client
captures multiple historical versions of
those documents enabling auditors to access
to multiple versions of the same document as
it changed over time. |
Section 802:
Document Alteration or Destruction
|
Section 802 amends Chapter 73 of title
18, United States Code, by adding certain
criminal penalties for altering documents
including making it a felony for anyone to
willfully violate certain provisions
regarding audit and review work papers
retention and certain SEC document retention
rules and regulations. Specifically,
auditors of issuers are required to maintain
“all audit or review work papers” for five
years from the end of the fiscal period in
which the audit was concluded.. In addition,
this Section 802 instructs the SEC to
promulgate document retention rules.
Violations of these new provisions will
result in the imposition of mandatory fine
and may result in imprisonment (not to
exceed 10 years), or both. |
The backup service protects your
business by storing historical versions of
documents that could potentially be the
target of malicious destruction. Any file
maliciously destroyed on a local PC or
server could be restored in minutes from our
secure servers. |
Section 1102:
Tampering With a Record or Otherwise
Impeding an Official Proceeding
|
This Section 1102 amends Section 1512 of
title 18, United States Code to include
felony charges for whoever corruptly
“alters, destroys, mutilates, or conceals”
any document with the “intent to impair the
object’s integrity or availability for use
in an official proceeding” or “otherwise
obstructs, influences or impedes any
official proceeding.” This Section 1102 is
comparable to Section 803 and provides
analogous penalties--a mandatory fine and/or
a permissible imposition of imprisonment
(not to exceed 20 years). |
Online backup effectively mitigates your
risk of prosecution by protecting data
integrity and availability for official
proceedings. |
