Sarbanes Oxley Act (SOX) is American Act enacted in 2002, due to the fact that American public companies had collapsed by surprise because of irregularities or sacrileges that lead to misleading financial reports.
The Act covers to some major subjects:
- Determining that all business records and electronic messaging must be kept for period longer from 5 years.
- Obligation for company officials to declare on existence of proper controls that will ensure accurate financial report and will prevent similar cases of irregularities in the future or mistakes in representing company’s business state as is in the financial reports during affective audit on the reliably of the reports.
- The act imposes significant punishing and major enforcement measurements on companies who fails to comply in the demands.
According to the Israeli regulation instructions, this act has been adopted for financial institutes and banking sector. Furthermore, some of the principles has been implemented by the Goshen committee in regards to public companies in Israel.
The goals of SOX regulation are to improve the audit formations in organizations for prevent sacrileges and false reports and for ensure that organizations will improve in protection on their financial data in the best way. Another purpose is to promise ability for business survival of organizations in case of harm in their main databases.
Primesec accompanies organizations n collaboration with some CPA offices in the followings aspects of the ITGC:
- Documentation of the processes in the organization by the law requirements.
- Testing perform relays on data from previous risks surveys and inspections in order to save the company resources.
- Writing and implementing procedures in the field of information security and information technology.
- Planning and delimitation of project implementation (quantitative and qualitative based on the financial statements and the corporate control environment)
- Examination of the effectiveness of the internal audit formation in the organization (consulting, specification and execution) and performing tests to verify the level of realization of the organization audit reliability of financial reporting.
- Alerting on audit formation failures or failures on the business practices.
- Assistance in building improvement plan for the audit formation and implementing the improvement plan.
As a result, Primesec provides services in regard to Goshen committee – committee established by Israel securities authority in purpose to confirm implementing of auditing in aspects of financial reports and information systems that have been relay on in the financial reports in public companies in Israel.