Sarbanes Oxley
Sarbanes Oxley Act
The Sarbanes Oxley Act (SOX) was established in 2002 after numerous financial scandals weakened investor confidence in the accounting and financial controls of public companies. The SOX Act establishes new accounting requirements and control for US public companies. Also known as the Public Company Accounting Reform and Investor Protection Act, SOX Compliance is administered by the Securities and Exchange Commission (SEC) and its purpose is to protect shareholders against fraudulent accounting practices by requiring companies to certify the accuracy and reliability of corporate disclorues to ensure the appropriateness and legitimacy of financial accounts.
What is SOX Compliance
The scope of SOX Compliance is broad and encompasses a company's management of quality, security and operational risk. Effective risk control of Information Technology (IT) is an essential element of corporate governance and is a key enabler for business process control and compliance with the Sarbanes-Oxley legal and regulatory framework. SOX Compliance is the process of ensuring transparency of corporate disclosures by requiring that internal controls related to financial reporting are documented and tested to ensure the effectiveness of accounting controls in the construction of annual reports and other financial disclosures.
Sarbanes Oxley Related: Sarbanes Oxley, Sarbanes Oxley Act, Sarbanes Oxley Compliance, SOX 404, SOX 404 Compliance, SOX 404 Penalties, SOX Act, SOX Compliance, SOX Compliance Checklist, SOX Compliance Tools
