SOX software compliance is a legal requirement for corporations and it is one of the fair business practices ensuring that the companies behave ethically. It limits the access of the internal financial systems by providing protection against data theft or cyber-attacks.
The US Congress passed the Sarbanes-Oxley (SOX) Act in 2002. The act is aimed at protecting people from fraudulent practices conducted by corporations and businesses. The SOX Act was created to ensure transparency in financial reporting by companies and to promote a formal system of checks and balances.
US Senator Paul Sarbanes and Representative Michael G. Oxley were involved in creating the bill after a number of high-profile corporate scams came to light. The desire was to protect investors by increasing the consistency and accuracy of corporate discoveries. SOX software compliance puts forth a set of responsibilities that the board members and officers of publicly listed corporations must follow. Within the act, there is the provision that states criminal penalties will be enforced if a business fails to comply with the prescribed norms.
SOX software compliance is applicable to publicly listed companies, audit companies, and accounting firms who work with companies that fall under SOX.
Different organizations can vary in their SOX software compliance checklists. Some of the common guidelines to be followed are:
There are a number of benefits to using compliant SOX software:
It is advised to take the help of an expert to make sure that everything runs smoothly, and the business also stays compliant. There are numerous risks associated with the non-compliance of SOX. You should ensure that you are using good security controls for staying compliant. SOX software compliance ensures that you have complete knowledge of your companies’ sensitive data. The applicable companies need to take part in audits on a yearly basis and the audit results should be made public to all the stakeholders.
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