Which law should an IT manager review to set accounting record retention policies?

The Sarbanes-Oxley Act is the correct law for an IT manager to review when setting accounting record retention policies. This legislation was enacted in response to corporate scandals and aims to enhance the accuracy and reliability of corporate disclosures, primarily focusing on financial reporting and auditing processes.

The act establishes strict regulations regarding the maintenance and retention of financial records, requiring companies to retain documents related to financial audits and reviews for a minimum period of seven years. This means that any organization must have a clear policy to ensure that accounting records, as well as related electronic data, are stored and accessible for this specified duration.

Understanding the Sarbanes-Oxley Act is essential for IT managers because it directly impacts how financial information is stored, handled, and protected within an organization. This ensures compliance with legal requirements and helps mitigate risks associated with data loss or mishandling, which can result in severe penalties for organizations.