Publicly traded companies, wholly owned subsidiaries, and foreign companies that publicly trade and conduct business in the US are subject to SOX regulations.  

Under ordinary circumstances, private companies and nonprofits are not subject to the SOX act’s auditing requirements, but these companies can benefit from voluntary audits. Private companies are subject to the law under its provisions on hindering federal investigations, whistleblowing, and preparing IPOs and sales to public companies. 

In brief, companies must complete a yearly audit on financial information and an assessment of internal control structures. IT departments and their cybersecurity procedures are also examined. The audits must be performed by independent external auditors who are authorized by the Public Company Accounting Oversight Board (PCAOB). 

Our Ethics and Compliance Cloud helps you develop the protocols necessary to adhere to SOX compliance requirements. Streamline the adoption of policies with interactive codes of conduct, targeted outreach, and employee engagement tracking. Set up customized training for your stakeholders. And effectively manage your ethics policies by centralizing them in a single dashboard where you can edit, distribute, and collaborate on changes.