What is SOX Compliance?
Sox, or Sarbanes-Oxley, the law designed to prevent fraud in the corporate world. It was founded in 2002 following various corporate scandals that caused huge financial losses for investors when share prices plummeted. The tumultuous furor that followed triggered this precautionary measure to monitor companies that deal with finances.
The role of information technology in the Sox Compliance
The IT environment is very fragile and susceptible to various types of security breaches, which means that Sox compliance has become an integral part of the IT culture. Per SOX standards, there are requirements for the maintenance and preservation of audit trails for all log files and documents for at least five years.
intentions Sox standards are held accountants that help in generating financial statements. So Sox plays an important role in defining what files are needed for storage, and IT departments must provide these records for compliance review. The IT department must therefore be aware of SOX requirements, including rules on Log Management and backups.
Also, a new platform of communication, such as web logs and social networking site, produce massive data through sharing and messaging which poses a huge compliance challenge. If this information is related to finance and accounting will be stored and storage purposes compliance review.
1. Sox go involves a complex process because there are different provisions concerned. Be provisions apply to companies and their managers, while others are intended for representatives of the law to ensure compliance regulations are adhered to.
2. Compliance with the Sox involving animals framework, companies have to invest in more recruits for maintenance, organization and preservation of audit logs.
3. Penalties for non-compliance with the Sox can range from minimal legal action, such as fines, to prosecution and incarceration.
Overcoming Challenges Sox
The solution to deal with all the security and IT compliance issues including SOX is a unified and integrated approach that follows a simplified process and reduces waste time. With fully automated functions efficient compliance management software, companies can have complete control over security, compliance, audit and risk management needs. This method is also best for small and medium businesses, this service is very cost-effective.
By controlling the Sox go through standardized and automated processes, organizations can enjoy a competitive advantage, but also to ensure complete adherence to and compliance with applicable standards.