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A PDF copy of SOX is available here.
Sarbanes-Oxley (SOX) is a rather complicated act that attempts to prevent corporate fraud. To that end, SOX compliance requires attention to many different clauses in the Act.
Section 404 seems to cause the most concern and states that publicly traded companies must have policies and controls in place to secure, document, and process material information dealing with their financial results. It also states that documentation, testing and support must be audited and reported on.
While most provisions of the SOX Act focus on financial records, they were clearly not meant to stop there. For example, during an investigation, discovery requests can be submitted to IT departments. In addition, such requests could require access to all email communication. As such, SOX compliance requires that strict records retention policies and procedures must be in place, as well as quick data retrieval.
Ignorance is no longer an excuse. Penalties for non-compliance include substantial fines and significant prison terms for anyone who knowingly alters or destroys a record or document with the intent to obstruct an investigation.
SOX compliance can seem like an overwhelming task, but InfoSight can help you understand your obligations under the Act, navigate Section 404, and walk you through the implementation process quickly and easily.
We can help you reduce the costs of complying and provide tools and processes to transform a seemingly burdensome project into a simple process. Contact us today for professional help with SOX compliance.
The Sarbanes-Oxley Act (SOX) was signed into law on 30th July 2002 to strengthen corporate governance and restore investor confidence. Following a series of very high-profile scandals, such as Enron, the Act introduced highly-significant legislative changes to financial practice and corporate governance regulation.
SOX itself is organized into eleven titles, although sections 302, 404, 401, 409, 802 and 906 are the most significant with respect to compliance and internal control. SOX makes CEO's and CFO's personally responsible not only for financial statements that accurately reflect the financial condition of the organization, but also makes them responsible for setting up and maintaining systems that ensure that they actually know the truth about what is going on in the organization.
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