SOX Compliance
SOX Compliance refers to adherence to the Sarbanes-Oxley Act of 2002, a U.S. federal law that sets requirements for public companies regarding financial reporting, internal controls, and corporate governance. It aims to prevent accounting fraud and protect investors by ensuring accurate financial disclosures and accountability from management and auditors. For developers, this involves implementing and maintaining IT systems, controls, and processes that support secure, auditable, and reliable financial data handling.
Developers should learn SOX Compliance when working for or with publicly traded U.S. companies, financial institutions, or organizations subject to similar regulations, as it's critical for ensuring legal compliance and avoiding penalties. It's used in scenarios like designing secure financial applications, implementing access controls, maintaining audit trails, and documenting IT processes to meet internal control requirements. Understanding SOX helps developers build systems that support accurate financial reporting and reduce fraud risks.