SOX Framework and SOX Compliance
As technology became more integral to corporate reporting, IT controls came partially under the SOX purview. Organizations that need to be SOX compliant look first at how their financial statements reflect the risks of their authorization, process, and records transactions. They then determine whether the controls work and what risk a control failure poses. Most importantly, SOX leaves one of its main directives slightly vague by defining a material weakness as “one or more deficiencies that create a reasonable possibility of a material misstatement.” Since materiality differs from one organization to the next, audits focus on the logic and documentation of corporate decisions.
Organizations with limited staffing and resources often turn to spreadsheets to help CISOs document these 404 decisions. When auditors test the controls and attempt to document this on the spreadsheets, the process becomes inefficient and overwhelming. The more people involved in the documentation process, the less visible the tracking, testing, and compliance posture. Automation makes the logic more transparent to each area of the organization that needs to access the information.
Why manage SOX with ZenGRC?
SOX compliance is all about keeping the company’s internal house in order.
Because of constant changes in the regulatory and IT landscapes, handling a SOX audit correctly has become infinitely more important to customers as they manage their own compliance and that of their suppliers. Without fast access to proofs of compliance and demonstrated risk management processes, closing big deals becomes more difficult and your company will lose to the competition that pass better inspection by customers.