In 2002, the Sarbanes-Oxley (SOX) Act legislation ushered in a renewed focus on corporate compliance by requiring that organisations provide quarterly and annual reports certifying the accuracy of their financial statements. The SOX Act was designed to increase transparency in financial reporting and standardise a system of internal checks and balances.
SOX Section 404 requires organisations to have an external audit performed to assess and report on the effectiveness of internal controls.
SOX Section 302 requires an organisation’s CEO and CFO to assert the integrity of the key controls that influence their financial statement reporting on a quarterly basis.
Prior to the officers signing, certification requests are sent to process or control owners in various departments within the organisation. This approach helps to assure signing officers that key internal controls over financial reporting are operating effectively across all departments, and provides them with the confidence they require to sign the 302 quarterly certifications.
Satori can help simplify SOX 404 implementation and automate SOX 302 certification.