Document Storage – Accounting Firms
A professional liability insurance firms makes the following recommendation for Accounting Firms. “A seven-year retention period for work papers is generally considered to be sufficient, as long as it is part of a documented policy that the firm follows consistently. If, however, the firm becomes aware of existing or threatened litigation or investigations concerning a client, it should remove its files concerning that client from the destruction process until it is clear that the matter is over.
Accounting firms are trusted with some of an individual’s or an organization’s most valuable private information. With financial fraud on the rise, federal and state governments have stringent laws that spell out the responsibility that financial firms have in safeguarding their clients’ information.
CDS ensures compliance with all legal requirements and regulations governing the financial services industry, including:
- Sarbanes-Oxley Act of 2002 (SOX), which says that paper and electronic records must be kept for five years, and that public companies must disclose and evaluate their internal controls. SOX stresses how crucial it is to maintain an internal document retention and destruction policy.
- The Fair and Accurate Credit Transactions Act of 2003 (FACTA), which helps protect consumers from identity theft. Provisions in this legislation require records to be retained for specific periods of time, and that outdated or unnecessary consumer information be disposed of properly to protect against “unauthorized access to or use of the information.”
- The Gramm-Leach Bliley Act (GLBA), also known as Financial Modernization Act of 1999, requires financial institutions to protect consumers’ personal information through a program of secure records retention and storage, as well as eventual disposal of those records by shredding of files, records and other documentation that contain clients’ private information of a financial nature.
We understand the cyclical nature of most accounting firms, and we will work with you to create a document storage and destruction schedule that optimizes your document management needs.