SOX Compliances
Sarbanes Oxley Act (or SOX Act) is a U.S. law which was passed on July 30, 2002. Witnessing a number of high-profile accounting scandals in the U.S., including Eron, Tyco, WorldCom, and the bursting of the dot-com bubble in the late 1990s, which resulted in huge losses to the investor & badly impacted the financial market. After all those incidents happened in U.S. Lawmakers felt it was necessary to implement strict rules for accountants, auditors, & corporate officers with a view to reduce scandals the country would face in the future. SOX Act, 2002 was implemented with a view to protect shareholders, Employees & investors from accounting errors & fraudulent financial practices. Why SOX?
SOX audit ensure the effectiveness and efficiency of IFC. It also helps in identifications of risk involved in the system where there are no any such controls to mitigate such risks. It also improved the documentation in the organisations as SOX make the companies personnel accountable for completeness & accuracy of records. It also helps the organisations in identifying of any illegal activities carried out by any personnel in the organisations, also ensures reduction of manual work carried on in the organisations through automation. With the help of SOX audit, organisations can mitigate the risk both at designed level and operational level associated with the processes by implementing the proper control on it.
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