Sarbanes-Oxley Act (SOX)

U.S. law that requires transparency in financial reporting to prevent fraud

What is Sarbanes-Oxley?

The Sarbanes-Oxley Act of 2002—commonly referred to as SOX—is a U.S. federal law that mandates transparency in corporate financial recordkeeping and reporting to prevent fraud. U.S. public companies and foreign companies or subsidiaries that do business in the United States are required to have accurate, secure reporting procedures for both financial information and data security practices.

At a Glance
Standard	Sarbanes-Oxley
Region	United States
Released	2002
SAI360 Solution	Internal Control & SOX Compliance

Three main provisions of the law outline requirements for financial reporting, internal controls, and recordkeeping. Section 302 requires senior corporate officers to personally certify that company financial statements comply with SEC disclosure requirements. Section 404 requires management and auditors to establish internal controls, along with reporting methods that ensure their effectiveness. And Section 802 focuses on recordkeeping: destruction and falsification of records, retention period for storing records, and requirements for storing business records, including electronic communications.

Why is SOX Important?

Developed as a result of several high-profile corporate fraud cases, SOX is designed to provide greater corporate oversight to prevent similar crimes. Noncompliance can result in large fines and/or potential imprisonment for corporate executives. SOX compliance is not only a best practice, it also serves as an effective measure against data security threats and attacks.

How SAI360 Supports SOX Compliance

SAI360 supports compliance within SOX by providing a flexible, agile approach to risk management. Our Internal Controls and SOX compliance software, combined with modern ethics and compliance learning conten, maps risk to requirements, automates assessments, and improves compliance and business performance so you can truly manage your IT risk. It enables you to make agile decisions using up-to-the-minute dashboards for key metrics to:

Meet SOX compliance
Get a consolidated view of your internal controls
Drive accountability and reduce risk
Provide confidence for stakeholders and regulators

If you are looking to operationalize internal controls across your organization, SAI360 provides a solution that is ready to help you meet the expectations of your shareholders, regulators, customers, and partners.

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