What is SOX compliance?

The passage of the Sarbanes-Oxley Act in 2002 established the guidelines of SOX compliance, a comprehensive reform of financial practices among businesses in the United States. The law was passed in the wake of enormous scandals at Enron, Tyco, and WorldCom to protect the public from such fraud and improve corporate governance and executive accountability.

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Who is required to comply with SOX Compliance guidelines?

SOX compliance applies to companies that meet any of the following conditions:

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Public Companies

All publicly traded companies in the U.S. are required to abide by SOX compliance guidelines.

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Accounting Firms

Accounting firms that audit publicly traded companies must comply with SOX as well.

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Companies that are preparing for an initial public offering (IPO) should be SOX-compliant before they are listed on the stock exchange.

Some language within SOX contains provisions that apply to private companies, charities, and non-profits. They can be penalized for knowingly destroying or falsifying their financial data, or retaliating against whistleblowers.


The Key Components of SOX Compliance

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A financial accounting framework

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Documented SOX
compliance policies

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Annual assessment of internal financial auditing controls

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Protection for

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Disclosures of changes to a company’s financial condition or operations

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Protecting Whistleblowers to Maintain SOX Compliance

Whether you’re a publicly traded company or you do business with one, you are required to protect whistleblowers. Learn more about the requirements you face and discover the most effective way to comply with them in this blog post.

SOX Compliance Solutions

Convercent’s compliance solutions can provide a solid foundation for SOX compliance. When you combine multiple solutions, you get a more holistic view of risk, a more effective method for engaging employees with your policies, and a more compliant company. Click the links below to learn more about each solution.

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Policy Manager

Maintain, distribute, and track your financial control policies and procedures,prepping your company for audits and providing evidence of SOX compliance

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Provide employees with a user-friendly, multi-intake-channel whistleblowing hotline that allows you to track and prevent retaliation

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Ethics & Compliance Portal

Publish an engaging code of conduct that makes your stance on retaliation clear and connects your policies to company culture

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Inoculate managers and employees against misconduct and fraud with a training program that measures training success

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Ethics Cloud Platform

Combine Convercent solutions for greater risk visibility, stronger buy-in across the organization, more effective training, and deeper analytics

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Identify risk areas before misconduct happens with a comprehensive analytics platform that combines data from across the organization

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Third Party Risk Management

Third-party risk management software for ethics and compliance, with automated screening, due diligence, risk management, and ongoing monitoring

Flexible, scalable compliance solutions that meet SOX compliance guidelines now—and grow to meet your future needs

Our comprehensive suite of integrated solutions is built to evolve and grow alongside the needs of your business, industry best practices, and changing regulations including SOX. See how one or more Convercent solutions can help you build a compliance program that keeps your organization ahead of the evolving regulatory landscape.

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