Sarbanes-Oxley Act: SOX

  • Became Law on July 30th, 2002
  • Oversight by Securities & Exchange Commission
  • Created a Public Company Accounting and Oversight Board
  • Most comprehensive corporate anti-crime law in history
  • HIPAA and GLB are privacy acts.
  • Sarbanes Oxley is a corporate governance act.
  • Separated accounting functions into: Consulting - Audit
  • Audit now has more power & authority
  • Must change audit teams every 5 years
  • It's no longer just the numbers a company reports
  • It's how it got those numbers
  • If a policy is not in writing it does not exist
  • If an action is undocumented it did not happen
  • Company CEO, CFO & CIO must certify to the completeness and accuracy of financial reporting
  • Consequences: Costly remediation - Loss of stockholder confidence - Stockholder lawsuits - Criminal penalties
  • The Consequences tend to get your attention
  • The entire process of ensuring compliance is so massive and so complex that it can only be achieved by automation
  • SOX only specifies what a well run company should already be doing
  • The high cost of compliance is offset by operational efficiencies that will result in a competitive advantage

Click on the link to download the SOX Flyer.

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