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LEARN ABOUT
SOX 404 COMPLIANCE |
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Learn about Sarbanes-Oxley (SOX) 404 Compliance
The Sarbanes-Oxley Act of 2002 is a United States federal law that was passed after corporate accounting scandals (ie. WorldCom, Enron, and Tyco International) caused public mistrust in accounting and reporting practices. Sarbanes-Oxley, or SOX, affects all publicly-traded companies regardless of size or financial status.
Sarbanes-Oxley (SOX) affects all industries, unlike other forms of compliance such as ISO and HIPAA. If a company is traded in the public markets, it is required to comply with SOX regulations.
SOX contains 11 sections, ranging from Corporate Board responsibilities to criminal penalties. One section, 404, requires company management to produce an ‘internal control report’ annually.
This report must affirm management’s responsibility for establishing and maintaining adequate internal controls and procedures over financial reporting. Additionally, the report must also contain an assessment, as of the most recent fiscal year-end, of the effectiveness of these controls and procedures.
Most compliance efforts start with a framework for control design. Both the Committee of Sponsoring Organizations of the Treadway Committee (COSO) and the IT Governance Institute’s Control Objectives of Information and Related Technology (COBIT) provide the most commonly used frameworks for SOX control and procedure architecture. As a result, the past couple of years, have begun to yield a more consistent set of IT controls.
InfinIT Consulting SOX IT Consulting Services:
Learn about our expert SOX consulting services and our methodology for creating and implementing an effective SOX plan to reach compliance year after year.
Contact us today to schedule a SOX consultation & audit
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