Sarbanes-Oxley Act of 2002 (SOX)

The Sarbanes-Oxley Act of 2002 is the legislative response to some high-profile financial scandals which have occurred at large U.S. corporations. It was enacted to protect stockholders and the general public from accounting fraud and other inappropriate business practices conducted by publically traded companies as well as their accountants and attorneys.  The act regulates email retention, integrity, management and oversight and affects both the financial and IT departments of businesses. It also details the minimum retention periods for all accounting records, office paperwork, email communications, file attachments, and documents transmitted via an electronic method.

The following sections of Sarbanes-Oxley affect the management of electronic data:

• Section 802 imposes a fine of up to $1,000,000 or a prison sentence of up to 20 years for any person who destroys, alters, mutilates or conceals any electronic document in an official investigation.
  
  
• Section 302 requires chief executives and chief financial officers to personally certify and accept accountability for their firms record retention policies and financial reports.
  
  
• Section 404 requires auditors to certify that the underlying controls and processes that are used to compile the financial results of a company are in place. Email is a critical component in being achieving this certification.
  
  
• Section 103(a) and 801(a) require companies to maintain all documents including emails which form the basis of an audit or review for seven years.

As a result of Sarbanes-Oxley, IT departments are now faced with the challenge of creating and maintaining a corporate records archive in a cost-effective manner but still satisfy the requirements of this federal regulation.

Our Hosted Email Archiving Service enables you to comply with the Sarbanes-Oxley Act by securely capturing, indexing and storing multiple copies of auditable email for quick retrieval through our easy to use web-based search and discovery interface.

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