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Sarbanes Oxley act

* The Sarbanes–OxleyActof2002 also known as the “Public Company Accounting Reform and Investor Protection Act” and
“Corporate and Auditing Accountability, Responsibility, and Transparency Act” (in the House) and more commonly called
Sarbanes–Oxley or SOX, is a United States federal law that set new or expanded requirements for all U.S. Boards,
management, and public accounting firms of publicly traded companies.

Sarbanes Oxley act(contd.,)

Many elements of the Act, such as the willful destruction of evidence to obstruct a government investigation, also apply to
privately held businesses. "To safeguard investors by increasing the accuracy and dependability of business disclosures," is
the declared objective of SOX.

SOX is applicable to:

* All publicly held American companies

* Each and every foreign business that has filed equity or debt securities with the U.S. Securities and Exchange Commission
(SEC)

* Any accounting company or any third party that offers financial services to either of the aforementioned

* Penalties for non-compliance: Specifically, SOX violations can result in fines, expulsion from public stock exchange
listings, and invalidation of D&O insurance plans. In accordance with the Act, CEOs and CFOs who knowingly submit a false
certification to a SOX compliance audit risk $5 million in fines and up to 20 years in prison.

* IT organizations are using SOX as a framework for:

* Auditing current IT infrastructure to find inefficiencies, duplications, and unnecessary restrictions.

* Simplifying reporting and auditing procedures to boost output and cut expenses. improving security risk management
and speeding up response times in the case of a breach.

* Understanding which provisions of the act have obvious consequences for data management, reporting, and security is
the first thing an IT manager must undertake to get their company ready for SOX compliance.

* These are:

* Section 302: SOX Section 302 The financial reporting of a firm is covered by Section 302.

* According to the law, the CEO and CFO of a corporation must formally attest to the accuracy and completeness of all
documents.

* They must specifically attest that they take full responsibility for all internal controls and that they have evaluated them
within the last 90 days. These internal controls include a company’s information security infrastructure as much as its
accounting and reporting is performed electronically in other words, for almost all modern businesses there is
a clear mandate to ensure high security standards are enforced.

* Section 404: Section 404 stipulates further requirements for the monitoring and maintenance of internal controls
related to the company’s accounting and financials. Businesses are required to have an external company assess these
controls on a yearly basis.

* This audit evaluates the efficiency of all internal controls and directly informs the SEC of its findings.

* SOX compliance requirements include:

* PCAOB

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* COSO

* COBIT

* ITGI

The Public Company Accounting Oversight Board (PCAOB), which was established to provide auditing standards and
instruct auditors on the appropriate procedures for evaluating an organization's internal controls, was established. The
precise SOX criteria for information security are outlined in this section. Periodically, PCAOB offers suggestions for
improving the auditing procedure.

For obvious reasons, passing an audit requires that you are familiar with the most recent version of these
recommendations.

The Institute of Management Accountants (IMA), the American Accounting Association (AAA), the American Institute of
Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), and Financial Executives International are all
represented in COSO, which stands for the Committee of Sponsoring Organizations (FEI).

Periodic modifications to COSO's guidelines for the internal control framework have been issued since 1992. This paper
serves as the foundation for internal controls creation and implementation for the auditing standards developing by
PCAOB

* COBIT - Control Objectives for Information and Related Technology, is a framework made available by ISACA. The
Information Systems Audit and Control Association (ISACA), formerly called, sets standards for creating and evaluating
internal controls relating to business information technology. It defines best practises for 34 IT processes, effectively
making it a more detailed version of the COSO framework. Both approaches will be used by many firms when creating a
roadmap for SOX compliance.

* ITGI: The Information Technology Governance Institute (ITGI) is committed to assisting organisations in achieving their
goals while maintaining information security. Using COBIT and COSO as models, ITGI has independently produced its own
strategy for SOX compliance. But unlike COBIT, the ITGI framework only addresses security-related issues.

* The Financial Modernization Act of 1999, popularly known as the Gramm-Leach-Bliley Act (GLBA), is a federal law that
was passed in the United States to regulate how financial institutions handle customers' private information. The Act is
divided into three sections: the Financial Privacy Rule, which governs the gathering and disclosure of private financial
information; the Safeguards Rule, which requires financial institutions to put security programmes in place to safeguard
such information; and the Pretexting Provisions, which outlaw the practise of accessing private information under false
pretences or through pretexting. Financial institutions must also provide clients with written privacy policy notices that
describe their information-sharing activities, according to the Act.

The following types of information are covered by the GLBA:

* Addresses

* Bank account and financial data

* Biometric and related data

* Birth dates

* Car dealers

* Credit history

* Education level and academic performance

* Employment data;

* Inferences drawn from other data;

* Internet and other electronic information;

* Geolocation data;

* Names;

* Personal income;

* Social Security data; and

* Tax information.

Professions and businesses GLBA's provisions include:

* Accountants

* ATM operators

* Car rental companies

* Courier services

* Credit reporting companies

* Credit unions

* Debt collectors

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* Financial advisory firms

* Hedge funds

* Non-bank mortgage lenders

* Payday lenders

* Property appraisers

* Real estate firms

* Retailers

* Stockbrokers

* Tax preparers

* Universities

The three main sections of GLBA each outline a specific set of regulations that must be followed in order to be in
compliance.

Matched Source

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Title:www.govtrack.us › congress › votesH.R. 3763 (107th): Sarbanes-Oxley Act of 2002 -- GovTrack.us
The Sarbanes–Oxley Act of 2002 (Pub.L. 107–204, 116 Stat. 745, enacted July 30, 2002), also known as the "Public Company
Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility,
and Transparency Act" (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX, is ... See full list on
govtrack.us
https://www.govtrack.us/congress/votes/107-2002/s192/

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Title:
www.chegg.com › homework-help › questions-andSolved The Sarbanes–Oxley Act of 2002, more commonly | Chegg.com
The Sarbanes–Oxley Act of 2002, more commonly called Sarbanes–Oxley or SOX, is a United States federal law that set new
or expanded requirements for all U.S. public company boards, management, and public accounting firms.
https://www.chegg.com/homework-help/questions-and-answers/sarbanes-oxley-act-2002-commonly-called-sarbanes-
oxley-sox-united-states-federal-law-set-n-q87011968/

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Title:www.coursehero.com › file › 65477848ACC201 Week 3 Discussion 2.docx - Prior to beginning work...
In simpler terms, that there is a clear mandate to ensure high security standards are enforced. Section 404 enforces further
requirements for the monitoring and maintenance of internal controls related to the company’s accounting and financials. It
also requires businesses to have an outside firm conduct annual audits of these controls.
https://www.coursehero.com/file/65477848/ACC201-Week-3-Discussion-2docx/

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Title:Why is SOX important for Companies? - LinkedIn

https://www.linkedin.com/pulse/why-sox-important-companies-venkat-gattamaneni

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