Overview

Signify trust in your operations

The Sarbanes-Oxley Act (SOX), is a United States federal law. It protects investors by ensuring that they have access to accurate financial information when making investment decisions. SOX also aims to improve the ethical standards of corporations by tackling corporate and accounting fraud.

Comply with US law
Consistently meet high standards
Provide accurate information

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Effective SOX management

Meticulous record keeping and safeguarding data is essential for managing the provision of SOX and being able to provide regular reports. Having the right GRC systems in place makes it easier to manage all the different elements of SOX and to provide external auditors with the information they need.

Produce accurate disclosures
Establish robust controls
Provide timely assurance

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Meeting the requirements of SOX

SOX requirements	Ideagen audit and risk solution
SOX mandates the establishment of an independent audit committee as part of the board of directors.	Ideagen gives internal audit teams a purpose-built, expert system for managing the entire audit lifecycle, including SOX work.
CEOs and CFOs are required to certify in person that their company's financial reports are accurate and complete.	Ideagen solutions provide a robust approach to managing SOX across the three lines, so CEOs and CFOs can be confident in the assurance they are given by the internal audit team.
SOX requires companies to establish internal controls and reporting methods to ensure the adequacy of these controls.	Ideagen gives risk management teams a way to continuously monitor risks and establish effective controls, and internal audit teams a way to test, report, and advise on those controls.
SOX mandates the disclosure of all material off-balance sheet items and transactions.	Ideagen solutions can automate the process of creating and checking disclosures so that accuracy is improved.

SOX FAQs

How do internal audit teams contribute to SOX compliance?

Internal audit teams perform extensive audits on the company's internal controls, especially those that could have a material impact on the financial reporting process. The internal audit team must verify that all SOX-required disclosures have been properly made.

How do risk management teams contribute to SOX compliance?

Risk management teams identify, assess, and take action to mitigate the risks that could affect the company's financial reporting process. The team also plays a key role in ensuring that all SOX-required disclosures related to risk management and internal controls are accurately made.

How can risk management teams collaborate with internal audit teams to manage SOX?

The risk management team works in close collaboration with the internal audit team, providing them with valuable insight into potential risks that could affect the financial reporting process. This collaboration ensures a more effective and efficient audit process, further enhancing SOX compliance.

How does internal audit and risk software aid SOX compliance?

Software helps to manage the many complexities of SOX work. It can automate many of the processes involved with auditing and monitoring SOX compliance. This cuts the risk of human error and improves efficiency.

Software can also provide a real-time overview of a company’s SOX compliance status. This gives the audit committee and executive management the data they need to make informed decisions.

How does SOX protect customers?

SOX compliance ensures that consumers can confidently invest in or do business with corporations, knowing that they have a truthful understanding of the organization's financial health. It reduces the risk of fraudulent practices that could lead to an organization's downfall, safeguarding consumers from sudden losses.

Who has to comply with SOX?

SOX applies to all publicly traded companies in the US, including wholly-owned subsidiaries, and foreign companies that are publicly traded and do business in the US. It also extends to any private companies that are preparing for their initial public offering (IPO).

Additionally, SOX compliance is required by certain non-profit organizations, especially those with high revenues or who have issued bonds.

Is there a UK version of SOX?

The UK Corporate Governance Code is a close equivalent to SOX in the UK. It is not legally binding like SOX, but it holds significant influence over corporate governance policies of UK-based companies.

All companies with a premium listing of equity shares in the UK are required to report on how they have applied the code in their annual report and accounts.