Tag: SOX Compliance

What is SOX compliance? It refers to complying with all aspects of the the Sarbanes-Oxley Act, enacted in 2002 as a means to improve corporate disclosures and to protect shareholders and the public from accounting fraud or errors. The goal is better governance and accountability — but adhering to it is not without headaches for compliance officers and internal auditors.

All public companies now must comply with SOX, both on the financial side and on the IT side, since SOX now includes requirements regarding the storage of a company’s electronic records. Consequences for noncompliance include fines or imprisonment, or both.

One of the key provisions of SOX is SOX Section 404: Management Assessment of Internal Controls.