Why SOX Compliance Programs needed for Private Businesses?

Sarbanes-Oxley Act of 2002 (SOX) was introduced in the USA to protect the general public and shareholders from fraudulent practices and accounting errors which was going on in several enterprises, and to improve the accuracy of corporate disclosures. The act sets deadlines for compliance and publishes rules on requirements of compliance in the business sector. But it has been completely misunderstood that the auditing and financial regulations of the SOX compliance solely apply to public companies. There are many private companies that haven’t implemented a SOX compliance program because of the less awareness among them. They are completely unaware that there are several provisions in the SOX that completely apply to private companies as well. Apart from this several private companies also think of implementing SOX as a burden and might not realize the benefits. There are severe consequences for not applying SOX compliance to the business. It adds value to the organization as well as enhances the reputation of the firm.

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https://www.nsktglobal.com/why-sox-compliance-programs-needed-for-private-businesses-

Some of the advantages of opting for SOX Compliance programs by Private businesses include:

Mitigates the risk of Rapid Growth- There are several private companies that grow rapidly. The growth can be either organic or through acquisition and is always suspected of fraud or errors. The sophistication of these organizations often outpaces the skills and capacity of their support functions, including accounting, finance, and tax. Following the SOX compliance with preventive and detective controls measures can help mitigate the risk that comes with the rapid growth of the organization.
Provides assurance to private banks and investors- There are many users other than public shareholders who rely completely on financial information which is very important to save from getting leaked. The added security and accountability that comes with SOX Compliance of having controls in place is an added benefit to these users after incorporating the SOX compliance program.
Helps to strengthen the control structure- Sections 302 and 404 of the SOX Compliance require documentation of several controls, including personnel policies, operations manuals, and recorded control processes. When the auditors and management of the organization focus on internal controls of the company through a SOX assessment. In this way, the organization becomes more aware of the importance of control activities for financial success. The added scrutiny that comes along with a SOX assessment instigates participants to put extra effort in order to ensure that activities happening in the organization which is important for the financial growth of the company are reported and well-executed.

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A company’s SOX compliance talks about financial assurance, team work, transparency, audit, control structure, etc. This inspires both investor confidence and market certainty. NSKT Global is one of the top accounting firms which deals in SOX Compliance requirements. It helps private companies comply with all the requirements of the SOX Compliance and how to deal with it in a positive way.

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At NSKT Global we provides the complete range of advisory services to the SMEs as well as to the established businesses. Dealing in the industry for over 10 years. In countries across globe Namely UAE, USA and India.
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This release was published on openPR.