Sarbanes-Oxley Act (SOX)
Our wide-ranging experience enables us to help our clients to establish a control system and ensure compliance with SOX regulations. The Sarbanes-Oxley Act is an American law passed in July 2002. Often referred to simply as SOX, it requires a company’s management to meet higher reporting standards than was previously the case. In March 2005, the U.S. Securities and Exchange Commission (SEC) decided that all foreign companies listed on U.S. exchanges must meet the SOX requirements for all business years ending after July 15th, 2006.
Section 302 SOX states that the management (CEO and CFO) must confirm that their quarterly and annual financial statements are comprehensive and fairly represent the true financial condition of the company.
Section 404 SOX requires the management to establish an internal control and documentation system to ensure SOX compliance.