Designing and Implementing Secure Cloud Access for Users and Endpoints (SCAZT) 300-745 Exam Questions
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Which financial reporting regulatory framework must a publicly traded company doing business in the US comply with?
Correct Answer: B
The Sarbanes-Oxley Act of 2002 (SOX) is a mandatory federal law that all publicly traded companies in the United States must comply with to ensure the accuracy and reliability of their corporate financial reporting. Within the Cisco Security Infrastructure (300-745 SDSI) framework, SOX is a critical driver for designing secure architectures, particularly regarding access control, data integrity, and auditing . Sections 302 and 404 of the act are of particular importance to IT security teams, as they mandate that corporate officers certify the effectiveness of internal controls over financial reporting.
To satisfy SOX requirements, a security designer must implement robust logging and monitoring to ensure that financial data cannot be altered without authorization. Technologies such as Cisco Identity Services Engine (ISE) for role-based access control and Cisco XDR for centralized visibility are often utilized to provide the necessary audit trails. Unlike HIPAA (Option A), which focuses on protected health information, or FedRAMP (Option D), which applies to cloud service providers for the federal government, SOX is a broad financial regulatory requirement. While SOC (Option C) reports (such as SOC 2) are independent auditing standards often requested by businesses to verify service provider controls, they are not the federal law itself. Therefore, SOX remains the primary regulatory framework governing the security and integrity of financial reporting systems for public entities in the U.S.