Sarbanes-Oxley Act

The Sarbanes-Oxley Act (SOX) is a federal law designed to improve financial transparency and responsibility for U.S. public companies. It’s enactment in 2002 was prompted by several well-publicized accounting scandals. SOX established a number of standards for public companies to follow. From a data security perspective, two sections standout in providing high level guidance when it comes to understanding and implementing controls around financial data:

• Section 302 – financial reporting requirements
• Section 404 – internal controls reporting requirements