SOX, what’s all about?

Do you often hear that question and need a short and clear explanation for your non financial colleagues or junior personnnel? 

You may use the below one.

Remind your colleagues that they need to remmeber that no matter if this is SOX control or not, all controls require their attention, use of common sense, right behaviour and professional attitute.


SOX is a short name of a Sarbanes–Oxley Act, which came into force in 2002 as a reaction to major corporate and accounting scandals, including Enron.

Basically it is a law which regulates company’s governance and  accounting.

SOX regulations set stronger CONTROLs to secure financial transparency, accuracy in financial statements, and investors and clients’ interests.

SOX controls are focused on every activity which can influence accuracy of financial statements, especially those related with invoicing processing, payments, reconciliations, consolidation and reporting.

SOX requires that:

•         Financial statements are certified by CEO and CFO.
•          Internal Controls report is filed with the annual report and is assessed by an independent auditor.
•          Material changes in Internal Controls, financial condition or operations are disclosed in real time in company books.

The law sets also severe penelties for misconduct, which include fees and imprisonment,