ISO 27001 Certification in Thailand has several high-profiles corporate and accounting scandals brought down major players such as Enron and WorldCom, wreaking havoc on the global stock industry. Following these scandals, the United States passed the SOX Act to restore public confidence in financial details published by government entities. The laws demanded higher levels of accountability from top management in terms of data processing, as well as harsher punishments for fraudulent financial activity.
This thing will demonstrate how ISO 27001, the leading standard for Information Security Management Systems (ISMS), can be used to ensure compliance with SOX clauses relevant to control effectiveness demonstration from section 404.
What is SOX?
The Sarbanes–Oxley (SOX) Act is a federal law passed in the United States in July 2002 that establishes standards for enhancing the quality and reliability of financial statements made by companies doing business in the United States. It was a reaction to a series of corporate and accounting scandals that cost investors billions of dollars as the stock prices of the affected companies collapsed, and shook public trust in the US securities markets.
There are 11 names and 65 parts in the SOX criteria. ISO 27001 Consultants in Austria from the concept of corporate board duties to criminal penalties, there is a lot to consider. They also demand that the Securities and Exchange Commission (SEC) issue rules outlining how businesses must comply with the law. The following are the most relevant parts in terms of compliance:
- 302 – Corporate Financial Reporting Responsibility
- 404 – Internal Controls Management Assessment (the focus of this article)
- 409 – Issuer Disclosure in Real Time
Who is needed to comply with SOX?
SOX applies to the following organizations:
- Companies that are publicly traded in the United States, and their branches
- Non-US publicly traded firms doing business in the United States
Additionally, private companies that are planning for an initial public offering (IPO) must adhere to such SOX requirements.
What exactly is ISO 27001?
The ISO standard ISO 27001 Registration in Sri Lanka defines how to handle information protection in a business. In the main part of the standard, there are ten clauses, and in Annex A, there are 114 security controls divided into 14 parts. The following are clauses from the main part of ISO 27001:2013:
4 – Context regarding the organization
5 – Leadership
6 – Planning
7 – Support
8 – Operation
9 – Performance evaluation
10 – Continual improvement
ISO 27001:2013 Annex A covers controls related according to organizational structure (both physical then logical), ethnic resources, facts technology, dealer management, etc.
Section 404 of the SOX Act is a set of guidelines that must be followed.
ISO 27001 Services in Sweden has the Management Assessment of Internal Controls (Section 404) of the SOX Act has only two requirements:
- Top management must submit annual reports on the reach, adequacy, and efficacy of the organization's financial reporting internal controls and procedures. It must also state its intention to implement and retain certain controls and procedures.
- External auditors must testify to and report on the quality of an organization's internal controls on financial statements in the same report.
This portion is the most expensive and contentious to execute. This is due to the fact that it does not specify how such reports should be written or what facts should be used. Organizations will benefit from ISO 27001 at this stage.
How to get ISO 27001 Consultants in Sri Lanka?
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