The Sarbanes-Oxley Act (SOX) imposes various requirements on publicly traded companies and their financial reporting processes and internal controls. SOX aims to protect investors by improving the accuracy and reliability of corporate disclosures made according to securities laws.
In the context of IT, the Sarbanes-Oxley Act (SOX) has several provisions that relate to the use and management of information technology systems. These provisions include requirements for managing IT controls and implementing robust internal controls over financial reporting.
Under SOX, publicly traded companies are required to have sufficient IT controls in place to ensure the accuracy and reliability of their financial reporting. This includes controls over the accuracy and completeness of financial data and controls over access to financial systems and data.
SOX also requires companies to audit their IT controls independently as part of the overall financial audit process. This audit is intended to verify that the company’s IT controls are sufficient to support the accuracy and reliability of financial reporting.
In addition to these requirements, SOX also includes provisions related to the security and integrity of electronic records and electronic signatures. These provisions require companies to implement controls to ensure electronic records’ authenticity and integrity and prevent unauthorized access to or alteration of electronic records.