312-50V13 · Question #439
What information security law or standard aims at protecting stakeholders and the general public from accounting errors and fraudulent activities within organizations?
The correct answer is C. SOX. The Sarbanes-Oxley Act (SOX) is an information security law specifically designed to protect stakeholders and the public from corporate accounting errors and fraudulent practices.
Question
Options
- APCI-DSS
- BFISMA
- CSOX
- DISO/I EC 27001:2013
How the community answered
(32 responses)- A3% (1)
- B3% (1)
- C94% (30)
Why each option
The Sarbanes-Oxley Act (SOX) is an information security law specifically designed to protect stakeholders and the public from corporate accounting errors and fraudulent practices.
PCI-DSS (Payment Card Industry Data Security Standard) is a set of security standards designed to ensure that all companies handling credit card information maintain a secure environment, not directly focused on general accounting fraud.
FISMA (Federal Information Security Modernization Act) is a U.S. federal law that requires federal agencies to develop and implement agency-wide information security programs, focusing on government data, not private sector accounting fraud.
The Sarbanes-Oxley Act (SOX) is a U.S. federal law enacted in response to major corporate and accounting scandals, aiming to protect investors by improving the accuracy and reliability of financial reporting and holding corporate executives accountable for financial misconduct. It mandates strict reporting requirements and internal controls, including aspects of information security related to financial data.
ISO/IEC 27001:2013 is an international standard for information security management systems (ISMS), providing a framework for managing an organization's information security risks, but it is a standard, not a specific law against accounting fraud.
Concept tested: Sarbanes-Oxley Act (SOX) purpose
Source: https://www.sec.gov/news/press/2002-125.htm
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