SOX

The Sarbanes-Oxley law is to prevent fraud

The SOX standard is derived from the proposals of Senator Paul Sarbanes and Senator Michael Oxley. Initially there was little support for the proposals, but due to the many scandals in 2002 (Enron, Worldcom, AOL, etc) they were adopted in adapted form. The aim of the law is to prevent fraud. Unfortunately the human factor remains too decisive to completely prevent fraud even with this new law in place.

Threaths of imprisonment and financial penalties

A special feature of the legislation is the fact that imprisonment and financial penalties threaten the general management if they do not meet the conditions for sound corporate governance. Also non-US companies must also comply with the SOX legislation when they are listed on a US stock exchange.

The Sarbanes-Oxley Act (SOX) is primarily intended for large companies that develop and use their own software. Before the SOX legislation these companies already had internal control, but due to SOX this is now standardised and formalised. The IT takes a special place. If the software written by the company and provides the figures from which the accountants obtain their data, then the accountants will certainly ask questions about the development of this software. In many cases, the company will have to prove that the software has been properly managed.

The Trust Guard SOX report provides insight into the IT vulnerabilities

Trust Guard can contribute by offering a report that provides insight into the IT vulnerabilities (internally and external).