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sox compliance

NITIN GROVER (CA) (554 Points)

21 September 2007

can any body provide me the detailed guidance about sox compliance.

i need it at the earliest

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4 Replies

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 21 September 2007

Hello Mr Grover, This is abt your query, Sarbanes Oxley Act, 2002 (SOX): Section 404 of SOX requires management’s development and monitoring of procedures and controls for making their required assertion regarding the adequacy of internal controls over financial reporting as well as the required attestation by an external auditor, regarding management’s assertion. Section 302 deals with management’s quarterly certification of not only financial reporting controls, but also disclosure controls and procedures. The Act in itself places the responsibility for the compliance of the provisions with the management, which in no case be delegated or abdicated. Although the internal auditors are required to be extensively involved in the SOX project owing to the fact that the project falls within the natural domain of internal auditor’s expertise they are not directly responsible for its compliance as the Act does not place any responsibility on the internal auditors. However, for all practical purposes the internal auditor shall support the management in the discharge of these responsibilities. The internal auditor’s role in the organization for complying with SOX can be significant, but it should be compatible with the overall mission and charter of the internal audit function. Regardless of the type and level of involvement, it should not impair the objectivity and capabilities of the internal audit function for covering major risk areas of their organizations. Thus the internal audit function’s role should be one of support through consulting and assurance.

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CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 21 September 2007

Sarbanes-Oxley Act of 2002 is named after its authors Senator Paul S Sarbanes and Congressman Michael G Oxley and has been enacted to improve the corporate responsibility among American firms. Major concerns that were addressed: • To oversee the audit of public companies which are subject to the securities laws; • To establish audit report standards and rules; • To inspect, investigate, and enforce compliance on the part of registered public accounting firms, certified public accountants, and their associated persons

NITIN GROVER (CA) (554 Points)
Replied 21 September 2007

thanks Mr Dashrath 4 providing me the guidance I am really thankful 2 u

Rajesh Arya (service) (21 Points)
Replied 03 June 2016

Hi Dashrath: Could you brief me about relevance of SOX in Indian context. I specifically want to undesrstand its applicability to purely Indian companies, and wholly owned subsidiaries of foreign companies. Many thanks, Rajesh