Is your company ready for the SOX cycle?

As the end of the year approaches, publicly traded companies face an intensification of the audit cycle and a commitment to ensure compliance with the Sarbanes-Oxley Act (SOX). SOX compliance requires a special focus on robust internal controls, such as information technology (ITGC and ITAC), segregation of duties (SoD), and access management (IAM). In this article, we will present the main strategies and solutions so that your company is fully prepared for the SOX cycle.

To meet SOX requirements, companies must maintain effective internal controls to protect the integrity of financial statements and mitigate fraud risks. Among the most critical internal controls are:

• ITGC (General Information Technology Controls): Essential to ensure that IT systems operate safely and effectively.
• ITAC (IT Application Controls): Focused on the integrity of the data processed by the applications.
• IAM (Identity and Access Management): Responsible for controlling who has access to which data and systems, minimizing risks of improper access.
• SoD (Segregation of Duties): Ensures that no person has complete control over critical transactions, preventing conflicts of interest and fraud.

These controls strengthen security, make life easier for executives in defending their financial reports, promoting investor confidence, and ensuring that the organization complies with legislation.

The challenges of SOX compliance and how to overcome them

Managing and implementing these controls can be a challenge, especially in large companies with complex operations and cross-functional workflows. What would then be the main obstacles? We have listed below:

• Complexity of processes: The larger the organization, the more difficult it is to control access and ensure segregation of functions without compromising efficiency.
• Cost and time: Implementing and monitoring access controls and segregation of duties can consume a lot of financial and human resources.
• Real-time compliance: The need for continuous audits and active monitoring to meet SOX requirements requires efficient and integrated technological solutions.

To overcome these challenges, it is important to adopt a technological and automated approach capable of simplifying and streamlining compliance with SOX requirements without compromising security or the quality of internal controls.
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5 Benefits of Technological Solutions for SOX Compliance

Companies that invest in technology for access management and segregation of functions are able to optimize their preparation for the SOX cycle and guarantee a smooth audit. The main benefits are:

1. Automating access processes: Reduces risks of human error and ensures that all access is granted based on pre-defined criteria, increasing compliance.
2. Monitoring: It allows you to quickly identify and correct potential segregation of duties violations, ensuring that the company is always aligned with regulations.
3. Cost reduction: By automating controls and audits, companies reduce the need for intensive labor, reducing compliance costs without losing efficiency.
4. The technology allows audits to be carried out in a more agile manner, with data and reports ready for analysis in real time.
5. With the use of advanced tools, it is possible to implement effective access governance, minimizing fraud risks and increasing the security of corporate data.
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Increase compliance with Vennx Access Radar

For companies seeking efficiency and security in access management, Vennx Access Radar (VAR) stands out as a solution capable of automating and monitoring access management in real time, ensuring that all controls are in accordance with SOX requirements.

The VAR allows each user to receive only the permissions necessary to perform their functions, eliminating undue access. In addition, it reduces operational overhead and ensures compliance with auditing standards.

The implementation of robust internal controls, combined with the use of advanced technological solutions, such as the Vennx Access Radar, provides greater security, agility, and efficiency.
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Want to learn more about how Vennx can help your company achieve SOX compliance in a simplified way?

Talk to one of our experts here.

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