Lecture+16+-+Best+Practices+for+SOX+Compliance

BEST PRACTICES
FOR SOX
COMPLIANCE
SALIH AHMED ISLAM

FOUNDATIONS OF STRONG SOX COMPLIANCE
Commitment from
leadership is crucial.
Establish a culture of
integrity and accountability
Regularly identify and
assess financial reporting
risks.
Prioritize risks based on
likelihood and impact
Document key controls for
all significant accounts and
processes.
Ensure controls are
designed effectively and
operating as intended
Tone at the Top Risk Assessment Well-Defined ICs

Maintain thorough documentation of policies,
procedures, and controls.
Document all control testing and remediation efforts
KEY STRATEGIES FOR
MAINTAINING SOX COMPLIANCE
DOCUMENTATION IS KEY
Separate authorization, custody, and record-keeping
responsibilities.
Prevent fraud and errors by limiting individual control
SEGREGATION OF DUTIES
Regularly test the effectiveness of internal controls.
Perform both walkthroughs and control testing.
Use data analytics to monitor controls continuously
ONGOING MONITORING AND TESTING

LEVERAGING TECHNOLOGY FOR
SOX COMPLIANCE
Automation
SOX Compliance Software
Data Analytics
Automate repetitive tasks like control testing and data analysis.
Reduce manual effort and improve efficiency
Use software to manage control documentation, testing, and reporting.
Centralize SOX compliance data for better oversight
Leverage data analytics to identify anomalies and potential control
weaknesses.
Proactively address risks and improve compliance

CONTINUOUS IMPROVEMENT AND BEST
PRACTICES
Regularly Review and Update
Training and Communication
Stay Informed
Continuously review and update the SOX compliance program based
on changes in the business and regulatory environment
Provide ongoing training to employees on SOX compliance requirements.
Communicate regularly with stakeholders about the status of the SOX compliance program
Stay up-to-date on the latest SOX compliance guidance and best practices