SOX section 404 refers to the Management Assessment of Internal Controls, and has only two requirements: ISO 27001:2013 Annex A covers controls related to organizational structure (both physical and logical), human resources, information technology, supplier management, etc.įor detailed information, read: What is ISO 27001? and for implementation of safeguards An overview of ISO 27001:2013 Annex A. ISO 27001:2013 clauses from the main part of the standard are: It consists of 10 clauses in the main part of the standard, and 114 security controls grouped into 14 sections in Annex A. ISO 27001 is the ISO standard that describes how to manage information security in an organization. All publicly-traded non-US companies doing business in US territoryĪdditionally, private companies that are preparing for their initial public offering (IPO) also need to comply with certain provisions of SOX.All publicly-traded companies in the United States, including their subsidiaries.The following organizations must comply with SOX: 404 – Management Assessment of Internal Controls (the focus of this article).302 – Corporate Responsibility for Financial Reports.Regarding compliance, the most important sections are: They also require the Securities and Exchange Commission (SEC) to implement regulations to define how organizations are to comply with the law. These range from the definition of corporate board responsibilities to criminal penalties. SOX requirements are divided into 11 titles and 65 sections. It was a response to several corporate and accounting scandals that cost investors billions of dollars when the share prices of affected companies collapsed, and shook public confidence in the US securities markets. The Sarbanes–Oxley (SOX) Act is a United States federal law, enacted in July 2002, that set requirements for improving the accuracy and reliability of financial disclosures of organizations trading on U.S. This article will show how ISO 27001, the leading standard for Information Security Management Systems (ISMS), can be used to ensure compliance with SOX clauses from section 404, related to the demonstration of controls effectiveness. The laws required new levels of commitment by organizations’ top management regarding the handling of information, including more severe penalties for fraudulent financial activity. SOX law was introduced to restore public confidence of financial information released by public organizations. A number of high-profile corporate and accounting scandals collapsed several big players like Enron and WorldCom, and played havoc on global investment market.
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