The Sarbanes Oxley Act is a US federal law, enacted on 30th July 2002, governing financial reporting and accountability processes within public companies. The legislation was brought into force as a safeguard, following a succession of corporate accounting scandals, involving a number of high profile organisations. These companies purposefully manipulated financial statements, costing investors billions of dollars.
Sarbanes Oxley (SOX) contains 11 titles, detailing specific actions and requirements that must be adopted for financial reporting, ranging from corporate board responsibilities to criminal penalties incurred as a consequence of non-compliance. The most significant of these titles in terms of data transfer is section 404.
Sarbanes Oxley Standards
Section 404 states companies governed by SOX are required to:
- Publish information in their annual reports, stating the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting, detailing the scope and adequacy.
- Include an assessment of the effectiveness of internal controls.
What are the implications of SOX in terms of file transfer?
In order to provide this information and ensure compliance with US law, public accounting companies must implement large file transfer processes that ensure:
- The accurate recording of all financial data, including auditing logs.
- Regulate access to and modification of all financial data by unauthorised users.
- Track activity of data as it crosses application and organisational barriers.
Our specialists at Pro2col can help you to source and implement a SOX compliant secure file transfer solution to suit your business requirements. Please contact us on 0333 123 1240 for more information.