SOX Compliance

Who does SOX apply to?

The Sarbanes-Oxley Act (SOX) is a U.S. law that seeks to “protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws.” To increase financial transparency, publicly traded companies in the U.S. must comply with SOX in its entirety and privately held companies are required to not knowingly destroy or falsify financial records. The U.S. Securities and Exchange Commission is tasked with enforcing and overseeing SOX compliance.

What are SOX archiving compliance requirements?

SOX requires organizations to retain “relevant records such as workpapers, documents that form the basis of an audit or review, memoranda, correspondence, communications, other documents, and records (including electronic records) which are created, sent, or received in connection with an audit or review and contain conclusions, opinions, analyses, or financial data relating to such an audit or review.” All pertinent records must be kept for a period of seven years after the fiscal period in which the audit or review was concluded. For all SOX compliance requirements, refer to the law here. For the most up-to-date SOX archiving requirements, the refer to SEC website.

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