Also known as SOX compliance, the Sarbanes-Oxley Act of 2002 is a set of legal requirements for businesses. Basically, the point of this compliance is to stop misinterpretations or fraud in financial reports. The act came about as a response to financial scandals and the losses that they led to.
In this article, we’ll go over what SOX compliance is and what needs to be on your SOX compliance checklist. So keep on reading and we’ll walk you through everything that you need to know about SOX compliance!
SOX Compliance Overview
Sox compliance is required to protect investors. It sets up standards for businesses.
These regulations are meant to stop companies from manipulating financial reports. Businesses need to follow these standards to make sure that they are being transparent and ethical.
First off, SOX regulates public companies in the United States. Some private companies might also needy to comply.
A big part of SOX compliance is about protecting business records. This has to do with the protection of your digital data that is stored in corporate clouds.
If you are having trouble with SOX compliance, then you can have a professional help you navigate the rules.
SOX Compliance Checklist
There are several items on our SOX compliance checklist that will help you secure your system.
First, you need to detect security breaches. You also need to prevent data loss. You should use backup software and implement a data loss prevention strategy.
Your company will need to make sure that the data is protected in real-time. Company information should be safe at all times. This is why it is a good idea to use automated security software.
You’ll also have to prevent any tampering with your data. You should control user login and login attempts. You should also control other kinds of domain activity.
Make sure that you know which people have access to your company’s critical information.
Your company will need to provide reporting that is verifiable. This is similar to financial reporting and data security should also be accountable.
You’ll have to clear reports with regards to your security statuses. Any issues that you come across should be reported as soon as possible.
The company is going to need to give SOX auditors access to the information that they need. Make sure that you are able to give data about the security measures that you take to protect your information.
If you use role-based data access, then you can configure it.
The Importance of Knowing About SOX Compliance
Hopefully, after reading the above article, you now know what needs to be on your SOX compliance checklist. Even if you don’t need to be SOX compliant, you can still be ethical and transparent by following the checklist above.
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