CMA Foundation · Fundamentals of Business Laws and Business Communication · Legal Aspects of Business Communication
Anand Textiles, Surat, keeps its invoices only as electronic records. Under the IT Act, 2000, which condition must be met for retention of such records to satisfy a legal requirement to retain documents?
Electronic records can satisfy retention rules if they stay accessible, are kept in the original format or one accurately representing it, and retain details of origin, destination and time of dispatch or receipt. Paper conversion, storage with a Certifying Authority or encryption keys with the Controller are not required.
- AThe record must remain accessible and be retained in the format in which it was generated, sent or received, or one accurately representing it, along with details identifying origin, destination and dispatch/receipt timeCorrect
- BThe record must be converted to paper within seven days and the electronic copy deleted
- CThe record must be stored with a Certifying Authority at all times
- DThe record must be encrypted using a key held by the Controller
Explanation
For retention, the information must stay accessible for later reference, be kept in the original or an accurately representing format, and details showing origin, destination and the date and time of dispatch or receipt must be retained if available. There is no duty to convert to paper, store with a Certifying Authority or give keys to the Controller. Those options invent requirements.
Did you get it right without looking?
One question tells you little. A timed set on Legal Aspects of Business Communication shows your real accuracy, how long you take and where you lose marks.
More Legal Aspects of Business Communication questions
- Under the Indian Copyright Act, 1957, for most literary works published during the author's lifetime, the term of copyright is generally cou…
- Which of the following is a confidentiality-protecting practice when sending a business email containing sensitive client financial data?
- A consultant wants to quote two paragraphs from a competitor's published industry report in his own newsletter, with credit to the source, o…
- A manager gives an honest, confidential reference about a former employee to a prospective employer who asked for it, stating facts she beli…
- Sharma Traders emails a supplier a letter of intent stating, 'we will buy 500 units at ₹200 each if quality is approved'. To avoid later dis…
- Anil tells Sunita privately, in a closed room with no one else present, that she is dishonest in her dealings. Sunita is upset, but no other…