SOX Compliance Act
The Sarbanes–Oxley Act of 2002 was enacted in July 30, 2002. It is also known as the 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act' .It is commonly known as Sarbanes–Oxley, Sarbox or SOX. SOX is a United States federal law, which set new or enhanced standards for all U.S. public company boards, management and public accounting firms. It is named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley.
Need for SOX compliance
It is essential for every organisations to report their internal audit structure to Securities and Exchange Commission(SEC). The scandal made by the organisations is the major cause for the development of SOX. It improves the reliability of financial reporting and increases public awareness about the importance of audits. This act significantly raises criminal penalties for fraudulent behaviour, for destroying, altering or fabricating records or any attempt to defraud shareholders.
IT & SOX compliance
It is the duty of IT to appoint authorized people to conduct all financial transactions and data entry, and all transactions must be tracked in ways that support comprehensive auditing. To meet these and other business requirements, IT executives must ensure that the identity and access management (IAM) solutions at their enterprises deliver adequate levels of demonstrable, transparent compliance. Proper auditing must be done in IT organizations. IT auditor has to assure internal control, quality, security, privacy of information
Tags: compliance
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