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SOX Compliance Overview

The Sarbanes-Oxley Act (SOX) ensures that financial reporting by publicly traded companies in the U.S. is accurate, complete, and transparent, protecting investors and the public from accounting fraud.

Full Name
Sarbanes-Oxley Act of 2002
Type
Law
Authoritative Source
Public Law 107-204
Established
2002
Managed By
SEC; PCAOB oversees public company auditors
Applies To
US publicly traded companies and their external auditors
Certification
No: annual independent audit of internal controls over financial reporting (Section 404)

What does SOX compliance involve?​

  • Internal controls: Establishing and maintaining controls for financial records
  • Data security: Safeguarding financial data, tracking breaches, and logging electronic records
  • External audits: Having an independent audit firm review financial statements
  • Accountability: Ensuring senior executives are responsible for the accuracy of financial reports
  • Corporate governance: Adhering to administrative policies and ensuring proper governance