The SOX (Sarbanes-Oxley Act) was passed in 2002 to establish the rules to protect the public from fraudulent or erroneous practices by corporations and other business entities. The goal of the SOX Compliance legislation is to increase transparency in the financial reporting by corporations and to require a formalized system of checks and balances in each company.
SOX Compliance Audit applies to all publically traded companies in the United States as well as wholly-owned subsidiaries and foreign companies that are publicly traded and business in the United States.
Private companies, charities, and non-profits are not required to comply with SOX Compliances. Private companies that are planning an Initial Public Offering (IPO) should prepare to comply with SOX Audit before they go Public.
SOX Compliance Audits
The primary purpose of the SOX compliance audit in India is the verification of the company’s financial statements. SOX mandates companies to complete yearly audits and make those results easily available to any stakeholders. Businesses engage independent auditors to complete the SOX audits.
- Readiness evaluations are used to control how well prepared the business is to execute a SOX 404 compliance program.
- It is planned to highlight gaps and make references, to aid clients and guarantee the execution of an effective SOX 404 compliance program.
- Documentation and testing assistance are designed to help management support their assessment of their organization’s compliance with Sarbanes-Oxley Act 404 requirements.
- Sustainability valuations are planned to assist clients to calculate and recover their initial SOX 404 compliance efforts.
- SOX (Sarbanes-Oxley Act) services can be tailored to individual client needs through readiness assessments, through documentation and testing assistance and sustainability assessments.
How ASC Helps?
- Providing our clients with modified, business approved approaches that pave the way for client’s compliance initiatives.
- Assistance in preparing a preliminary compliance program that takes benefit of the most recent supervision to create a cost-effective approach to SOX 404 compliance that is suited to the business.
- Assistance in creating stronger links between risks and management’s decisions and decisions about how those risks are achieved through a company’s approach to ICFR.
- Decrease documentation through the use of a more engrossed testing plan that accounts for the impact of new or existing direct and observing entity-level controls.
- Assist in testing process level controls that are directly connected to recognizing financial reporting risks at the claim level.
- Recognize and device policies yearly to the SOX 404 compliance to decrease costs and expand the effectiveness of a client’s on-going SOX 404 compliance efforts.