| 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. |
