Tag Archive: sox

The Differences Between SOX 302 and 404 Requirements

Written by

The Sarbanes-Oxley Act of 2002 (SOX) is a law that implements regulations on publicly traded companies and accounting firms. SOX was created to improve the accuracy and reliability of corporate disclosures in financial statements and to protect investors from fraudulent accounting practices.  While the act consists of eleven titles, a significant amount of SOX requirements live within Section 302 and Section 404. These SOX compliance activities include the identification and testing of internal controls over the financial reporting process. Plus, they require the submission of specific financial certifications in quarterly and annual reports to the United States Securities and Exchange Commission (SEC).  Although these Sarbanes-Oxley sections are interrelated, there are differences between their specific requirements as well.  SOX Section 302…

Tags: ,
Categorized in:

Sox Management Review Controls

Written by

The Sarbanes-Oxley Act of 2002 (SOX) designates management review controls (MRCs) as one of the required internal controls. MRCs are the reviews of key financial information conducted by a company’s management to assess its reasonableness and accuracy. They are a key aspect of a public company’s internal control over financial reporting (ICFR).  Examples of these SOX management reviews include:      Review of reconciliations     Review of journal entries     Trigger events     The work supporting an estimate     Budget to actual variances  Management review controls are more complex than other controls since they require the examination of combined results as opposed to individual transactions. They involve comparisons of recorded amounts with associated projections based on…

Tags: ,
Categorized in:

Here’s Why Regulatory Compliance Is Important

Written by
COSO and COBIT 5

The phrase regulatory compliance comes with the onomatopoetic groaning sound made by most people involved in it. Despite what many consider the drudgery of rules and pedantic details, regulatory compliance offers several benefits for companies. Why Regulatory Compliance is an Important Part of Business Today Any compliance officer will tell you that financial safety is the first benefit associated with regulatory compliance. Regulatory noncompliance costs organizations steep penalties. More importantly for the c-suite, regulatory compliance provides guidance that helps businesses succeed.  Compliance law evolved to help create parity in the marketplace while offering consumers a sense of security. Enterprises need compliance to prosper ethically. Often, however, regulatory requirements feel like a quagmire dragging down profitability. Easing compliance management burdens with…

Out of Order: 5 Compliance Projects Gone Terribly Wrong

Written by
managing third party risk

No one wants to admit that compliance can go horribly wrong, but it does happen. If you’re worried about how to handle a problem, Reciprocity’s seasoned GRC experts can assure you they’ve seen it all. In this webinar, Matt Kelly, Editor of Radical Compliance talks with our own Aaron Kraus, Dave Schmoeller, and Dave Driggers as they share their stories of working on implementing compliance projects, how projects can detour, and what compliance executives should focus on during GRC implementation.   Aaron Kraus Reciprocity’s director of GRC security has consulted in every field necessary including government, financial services, and healthcare in a variety of roles including designing, implementing, and auditing. He’s also experienced in teaching CISSP exam preparation, Mac OSX,…

Understanding SOX Requirements & The Sarbanes-Oxley Act

Written by
COSO and COBIT 5

The Sarbanes-Oxley Act of 2002 (SOX), named after Paul Sarbanes and Michael Oxley, is a law that implements regulations on publicly traded companies. In 2002, the US Congress passed the Sarbanes-Oxley Act (SOX) after a series of public scandals by large corporations such as Enron Corporation, Tyco International PLC, and WorldCom that led to a stock market plummet only a few months before the 2002 elections. The legislation intended to quell public fears of corporate misconduct and to require greater accountability by management and Boards of Directors when reporting financial data. However, Sarbanes-Oxley turned into a larger and more complex piece of legislation than originally planned. The Major Provisions of Sarbanes-Oxley The Sarbanes-Oxley Act of 2002 presented five main provisions. First, it created…