Sarbanes-Oxley (SOX) Certification

Why get a Sarbanes-Oxley (SOX) Certification?

Since the passing of the Sarbanes-Oxley (SOX) legislation, compliance efforts have cost companies significant dollars. There is always a new twist or aspect that must be considered and embedded within the compliance process. Whether it be the new COSO 2013 framework, legislation dealing with fraud or pronouncements from the Public Companies and Accounting Oversight Board (PCAOB), individuals and organizations need a strong understanding of the techniques that are applicable to complying with the documentation, design evaluation, testing, and attestation requirements to comply with these critical Sections of the legislation.

SOX Section 302 and 404 are by far the most costly and time-consuming portions of the legislation. Organizations continue to spend millions of dollars on compliance efforts; non-compliance can result in SEC fines, sanctions and even criminal indictments. It is crucial that organizations continue to learn and evolve their SOX 404 and 302 processes and maintain an ongoing understanding of the many dynamics that impact the legislation requirements.

Understanding the basics behind the full legislation as well as the powers of the governing bodies (SEC and PCAOB) are critical components of ensuring your organization complies with the Sarbanes-Oxley legislation. It is not enough to simply focus on the most prominent sections of the legislation (Section 302 and 404), organizations must be aware of all compliance requirements and stay abreast of the actions of the SEC and PCAOB in regards to compliance efforts.

Any professional in today’s evolving business world will benefit from this timely SOX certification. The Sarbanes-Oxley legislation has been a key to many new business and financial processes. All organizations, regardless of their status as a publicly-traded company or privately held company, have looked towards the legislation requirements as a “leading practice” in financial reporting. This credential will establish the learner as an expert within the field of Sarbanes-Oxley section 302 and 404 as well as overall standards and compliance with the legislation.

SOX Requirements

Organizations must audit their financial statements on a yearly basis to stay in compliance with the SOX legislation. The main objective of SOX compliance audit is to confirm the accuracy of a company's financial statements; nevertheless, cybersecurity is a thing of importance in SOX audits. Proof of all SOX internal controls for data security and accurate financial reporting must be provided by the publicly traded firm for SOX audit.

Sections 302, 404, 409, 802, and 906 of the SOX act are considered to be the most important sections for SOX compliance.

Section 302: Corporate Responsibility for Financial Reports

Every public company is obliged to submit periodic financial reports to the SEC, and each report must be signed by both the CEO and the CFO to confirm that they have read it and that they certify it is free of material misstatements and omissions.

Additionally, they are in charge of implementing and maintaining internal SOX controls and are required to verify those controls within 90 days of the report's release.

Section 404: Management Assessment of Internal Controls

An Internal Control Report declaring that management is accountable for appropriate internal control structure and a management evaluation of the efficacy of the control structure must be included in every annual financial report. Any flaws in these SOX controls must also be disclosed. Additionally, the validity of the corporate management's claim that internal accounting controls are established, operational, and effective must be attested to by registered external auditors.

Section 409: Real-Time Issuer Disclosures

The main requirement of Section 409 is that businesses must notify investors of any significant changes to their financial situation or business activities in real-time. The purpose of this is to safeguard the public's and investors' interests.

Section 802: Criminal Penalties for Altering Documents

Anyone who willfully falsify, conceals, covers up, or mutilates any record, document, or tangible object with the aim to impede, obstruct, or influence the investigation of the proper administration of issues before the SEC is punishable by a fine, a maximum 20-year prison sentence, or both.

Section 906: Corporate Responsibility for Financial Reports

For certifying a false or fraudulent financial report, a fine of up to $5 million and 20 years in prison may be imposed.

Sarbanes-Oxley compliance is all about knowing what you're doing. In fact, it is highly likely that you know more about SOX compliance than the majority of your colleagues in your company or the person conducting your interview. But proving to your prospective or current employer that you understand the nuances of Sarbanes-Oxley might be difficult. Because of this, your next professional objective should be to get the Sarbanes-Oxley Certification.

The SOX certification leads to Sarbanes-Oxley Certified Expert (CSOE) status. Many organizations offer the necessary course materials for such certification. Risk officers, compliance officers, IT specialists, auditors, process owners, network, and security administrators can obtain SOX certification.