SOX compliance training is a new requirement that publicly held companies and other CPA’s have to comply with. The SOX Act (Sarbanes Oxley Act) was a landmark legislation passed by the Congress in 2002. The primary purpose of this Act was to bring about greater accountability among businesses, especially publicly held companies and their auditors.
As a result of this legislation, organizations are required to bring in enhanced accountability by implementing the provisions of Act, which pertain to being in compliance with its provisions as set out in the Public Company Accounting Oversight Board (PCAOB), an SOX creation.
Compliance with relation to important company activities
Companies are now required to ensure compliance with the provisions of SOX in a number of ways. These relate to increased monitoring of the regulatory environment, scrutinizing prospective audit clients with a committee, and increasing staffing as workloads go by. The exact ways in which each organization needs to audit these call for sound SOX compliance training. It usually consists of training capsules that are measured in terms of hours spent on training staff on SOX compliance. These range from introductory five-hour packs to detailed 40-hour packs.
Aims of SOX compliance training
SOX compliance training is aimed at equipping companies, especially publicly held one, to implement the provisions of the SOX Act. This has to be carried out by a person appointed by the company. This person has to be a senior employee, preferably a senior manager, director or partner, who will monitor all changes in standards and implement them. Whenever there is a change in standards activity in the company, this person has to report this to PCAOB. The company has to also make sure that this person communicates these developments to the employees and gives them the information and support needed for ensuring compliance.
One of the principal aims of SOX compliance training is to make sure that the provisions of the SOX Act, which relate to items such as internal audit controls and increase in staffing needs are adhered to. SOX compliance training has to impart the method by which a company’s board rotates its partners, another important SOX requirement. There are different rotation plans for different kind of companies.
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