What does Safeguards Rule mean on the CPA exam?
Safeguards Rule. The FTC rule requiring financial institutions to maintain a written information security program with a named qualified individual responsible for it.
Defined against 16 CFR Part 314.
Which CPA exam sections use Safeguards Rule?
Safeguards Rule appears in the ISC section of the CPA exam.
Related terms
- Privacy Rule: The HIPAA rule governing who may use or disclose protected health information and on what terms.
- straight debt: A written unconditional promise to pay a sum certain whose interest is not contingent on profits, which is not convertible into stock, and whose creditor is an individual other than a nonresident alien, an estate, qualifying trust, or regular lender.
- those charged with governance: The people responsible for overseeing the entity's strategic direction and its accountability, including the financial reporting process.
- general IT control: A control over the entity's IT processes that supports the continued effective functioning of information-processing controls and the integrity of information.
- internal control over financial reporting: A process designed to provide reasonable assurance regarding the preparation of reliable financial statements.
- SOC 2 report: A report on a service organization's controls against the trust services criteria, covering security plus any of availability, processing integrity, confidentiality, and privacy that are selected.