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Learn what SOX compliance is, why it is important, and how it affects public companies and their auditors. Find out the history, scope, and key sections of the Sarbanes-Oxley Act of 2002 and its impact on data security and financial reporting.
SOX compliance is the act of following the financial reporting, information security and auditing rules of the Sarbanes-Oxley Act, a US law that aims to prevent corporate fraud. Learn what SOX compliance involves, how it affects public companies and their stakeholders, and what challenges it poses.
SOX compliance is an obligation that all publicly traded companies in the U.S. have to adhere to under the Sarbanes-Oxley Act, commonly referred to as SOX. SOX also applies to accounting firms who audit public companies for SOX and any wholly owned subsidiaries and foreign companies that are publicly traded and do business in the U.S.
In 2002, Sarbanes–Oxley was named after bill sponsors U.S. Senator Paul Sarbanes ( D - MD) and U.S. Representative Michael G. Oxley ( R - OH ). To be "SOX compliant," top management must individually certify the accuracy of financial information. In addition, penalties for fraudulent financial activity are much more severe.
- An Act To protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.
- 15, 18, 28, 29
- Sarbanes–Oxley, Sarbox, SOX
- the 107th United States Congress
Nov 30, 2020 · Learn how the Sarbanes-Oxley Act (SOX) is a U.S. law to protect investors by preventing fraudulent accounting and financial practices at publicly traded companies. Find out the main sections, requirements, and controls of SOX and how they affect IT and data security.
- Josh Fruhlinger
Feb 28, 2024 · The SOX Act of 2002 is a law that reformed securities regulations and imposed tough penalties on fraudulent financial reporting by corporations. It created new rules for corporate responsibility, accounting, and recordkeeping, and added new criminal penalties for violating securities laws.
Jun 30, 2022 · Learn what SOX compliance is, who it applies to, and how to prepare for an audit. This guide covers the history, requirements, and controls of the Sarbanes-Oxley Act, and provides a checklist of practical measures to ensure compliance.
