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SOX Compliance & Testing In UAE

SOX Testing or Sarbanes-Oxley Testing is one of the premier processes through which internal controls over financial reporting of a company can be assessed thoroughly as a part of US Regulations compliance. With the mandate under Section 404 of SOX Act of the US govt, every organization ought to have systems to produce data required in compliance audits, or else will be penalised. Also the CFO and Principal Executive Officer need to testify SOX compliance, and sign and review the financial reports under Section 302.

SOX Testing process and Control Designing:

  • Creating control system: When SOX Compliance is carried out a proper internal control channel is made keeping 4 factors in mind- Access, Security, Data Backup, Change management. In the control designing, physical and electronic controls are put in place; demonstrate protection against any data thefts, and with off-site backups of entire financial records. Furthermore, installing new software, maintenance of access to new and current users, or updates in databases or applications related to financials is carried out by NSKT Global SOX Certified professionals.
  • Planning & testing controls: Planning is one of the laying pillars of the SOX process. If the firm hasn’t started planning, then they can zoom off keeping every key control in mind. As the top level people such as CFO and CEO will be involved for accuracy, documentation and submission of financial reports ensuring whether applied controls are working as per their standards, or not; making financial statement assertions more relevant.
  • High-Quality Documentation of the test procedures: Our conducted tests are carried out such that identification, analysis, documentation could be done to verify the objectives have been achieved. Internal control structure is defined by proper communication between the teams. All the necessary and important documents are kept as safe as evidence or producing when asked. These paper documentations are SEC and PCAOB complaints, to ensure expectations, high quality, and high level of consistency.
  • Identifications of shortcomings: A truly reliable process helps to identify the snags in the control processes and procedures carried out along with a possible set of solutions. Through SOX, every hitch will be referenced to the related paper, providing evidence for the deficiency. By implementing SOX firms can protect themselves from cyber-attacks and data thefts. Entire set of financial sheets become extremely transparent.
  • Year End testing & Remediation: With the assistance of NSKT Global, firms will be able to complete the SOX procedures, to ensure that all the controls are working smoothly around the end of each fiscal year, complying with the SOX Act, 2002, Section 404. SOX compliance or internal controls team will work to stop further deficiencies by documenting remediation for auditor review.