Application of technology in implementation of Sarbanes Oxley Act 2002

SOX Compliance applies to any company governed by the Securities and Exchange Commission (SEC) which includes all publicly traded companies; including all divisions, and their wholly owned subsidiaries, must comply with Sarbanes-Oxley. In addition Sarbanes-Oxley also applies to any non-US public multinational company engaging in business in the US. The act is a tool for the implementation of the greater responsibilities that was lacking in some of the companies that was convicted of fraud. The act means that companies shall try to focus on strong ethic codes, honesty in business, integrity and transparency. The act is a tool for the implementation of the greater responsibilities that was lacking in some of the companies that was convicted of fraud. The act means that companies shall try to focus on strong ethic codes, honesty in business, integrity and transparency. IT systems play a critical role in ensuring the accuracy of a company's financial reports. As a result, validation of IT controls is a key part of Sarbanes-Oxley compliance initiative. The report hence summarizes that implementing SOX aspects along with IT controls is a daunting task but the checklist and the tools mentioned here could prove to be an aid for organizations and also with a lesser deploying cost to their benefit.