What To Expect During A SOX Compliance Audit
CIMCOR, March 14th, 2023
In 2002, the Public Company Accounting Oversight Board (PCAOB) created the Sarbanes-Oxley Act (SOX) due to major corporate scandals at the time involving companies such as Enron and WorldCom (neither of which exist any longer as a result of said scandals).
Passed by Congress with hopes of deterring corporate fraud, improving financial disclosures, and protecting both investors and whistleblowers, SOX holds CEOs personally responsible for any errors made in accounting audits.
Now in its twenty-first year, many organizations believe the compliance work has improved their internal control financial reporting (ICFR), though the cost of being SOX compliant continues to rise.
For those who will need to go through a SOX compliance audit, here is an idea of what can be expected to take place.