SOX Compliance
Erin Geiger, Director of Content at Lumos

What Are the SOX Controls Listings?

Discover the key SOX compliance areas, including cybersecurity, automation, and third-party risk management. Learn how IT and security leaders can optimize controls and ensure their organization remains audit-ready with effective strategies and tools.

Table of Contents

When it comes to SOX compliance, IT and security leaders are responsible for managing several key controls to ensure financial data integrity and transparency. The SOX controls list generally includes four main categories: Access, IT Security, Change Management, and Backup/Recovery controls. Within IT specifically, the 6 ITGC (IT General Controls) focus on areas like user access management, system operations, and change control. These controls are essential for preventing unauthorized access and maintaining the integrity of systems that handle financial data. 

To meet compliance, the steps in SOX compliance involve defining and documenting internal controls, conducting regular testing, and preparing for external audits. These steps help ensure that financial reporting systems are secure and reliable. Looking ahead, companies should focus on ECA (Environmental, Social, and Governance) areas as these reporting requirements continue to evolve, particularly around cybersecurity and sustainability disclosures.

Managing all these controls efficiently requires a proactive approach, which is why many organizations use SOX compliance automation tools to simplify their processes. Ready to refine your strategy? Make sure your SOX controls list is up to date and aligned with both current IT standards and emerging compliance requirements for the future.

What Are the 4 SOX Controls?

The four main types of SOX controls are essential for ensuring financial data security and integrity within an organization. Here’s a breakdown:

1. Access Controls: These controls limit who can view or interact with financial systems. For example, only authorized personnel should have access to sensitive financial data, ensuring that critical information is protected from unauthorized changes or breaches. User authentication and role-based permissions are common SOX controls examples in this category.

2. IT Security Controls: These involve protecting the systems that process and store financial data. Encryption, firewall protections, and antivirus software are all part of this control type, ensuring that data is secure from cyberattacks or accidental leaks.

3. Change Management Controls: These controls ensure that any modifications to financial systems are tracked and approved. Change management processes prevent unauthorized or untested changes from affecting the integrity of financial data, which is a core part of SOX 404 controls.

4. Backup and Recovery Controls: These controls ensure that financial data is regularly backed up and can be restored in the event of a system failure or disaster. This is critical for data integrity and business continuity, forming an essential component of the SOX 404 PDF requirements.

To ensure compliance, organizations should document their full SOX controls list and regularly test these controls. Downloading a SOX controls list PDF can help you stay organized and compliant during audits. Having a strong controls framework in place helps mitigate financial reporting risks and builds trust with stakeholders.

What Are the 6 ITGC Controls?

The 6 ITGC (IT General Controls) are key components of SOX compliance, focusing on maintaining the integrity and security of IT systems that manage financial data. These controls are essential for ensuring that systems are reliable, secure, and compliant with SOX standards. Here’s a breakdown of the controls included in the SOX ITGC controls list:

1. Access Management: Controls that ensure only authorized users have access to critical financial systems. This involves managing user permissions and roles, along with regular access reviews to ensure compliance.

2. Change Management: Ensures that any changes to IT systems are tracked, tested, and authorized before implementation. This prevents unauthorized or faulty changes from affecting financial data.

3. Data Backup and Recovery: Involves regular backups of financial data and having a recovery plan in place to restore operations in case of a disaster or system failure. This is critical for business continuity and SOX compliance.

4. Incident Management: Establishes processes for identifying, reporting, and resolving IT incidents that could affect the integrity of financial data. This includes documenting issues and ensuring they’re resolved in a timely manner.

5. System Operations: Ensures that IT systems are monitored for performance and stability, with controls in place to detect and address system failures or performance issues.

6. Third-Party Management: Controls that ensure any third-party vendors or services handling financial data comply with SOX requirements.

A SOX ITGC controls matrix can help IT leaders track and manage these controls, ensuring they’re effective and well-documented for audits. Having a well-organized matrix is essential for ongoing compliance and audit readiness.

What Are the Steps in SOX Compliance?

The process of SOX compliance involves several key steps to ensure that your organization adheres to the strict financial reporting and data integrity standards set by the Sarbanes-Oxley Act. Here are the primary steps involved:

1. Identify Key Controls: The first step is identifying the internal controls that are critical for financial reporting. These include controls related to access management, change management, data integrity, and IT operations. A well-structured SOX compliance checklist can help you cover all these areas.

2. Document Processes: Every control identified must be thoroughly documented, showing how they work and who is responsible for managing them. This documentation is crucial during audits to demonstrate compliance with SOX regulations.

3. Perform Regular Testing: SOX compliance requires regular testing of controls to ensure they are functioning correctly. This could involve internal audits, vulnerability scans, or reviewing access logs to confirm that controls like user access restrictions are effective.

4. SOX 302 Certification: Section 302 requires senior management to personally certify the accuracy of financial reports. A SOX 302 certification example typically involves the CEO and CFO signing off that the internal controls are effective and that the financial statements are accurate.

5. Prepare for External Audits: External auditors will review your SOX controls to verify their effectiveness. Keeping a SOX compliance checklist PDF up-to-date helps ensure your controls are audit-ready.

Following these steps helps mitigate risks and ensures ongoing compliance with SOX.

What Are the SOX Compliance Areas for 2024 and Beyond?

Four key areas of emphasis of SOX compliance
Four key areas of emphasis of SOX compliance

In 2024 and 2025, SOX compliance will focus on several emerging areas as organizations adapt to new regulatory and audit standards. For IT and security leaders, there are four key areas of emphasis:

1. Cybersecurity Controls: With the SEC's new cybersecurity disclosure rules in effect, companies must enhance their focus on cybersecurity measures, ensuring risk assessments, incident response plans, and secure access controls are in place. Continuous monitoring and regular updates to cybersecurity practices will be crucial to meet both SOX and SEC standards. 41% of organizations had to disclose cybersecurity risks under the SEC's new rules, highlighting the growing role of cybersecurity in SOX compliance​.

2. Automation and Technology: More organizations are leveraging automation for controls like access management and transaction monitoring. Tools like RPA (Robotic Process Automation) are increasingly being used to streamline document requests and control testing, reducing human error and improving compliance efficiency.

3. Mergers and Acquisitions: As business combinations continue to rise, SOX programs must account for changes in materiality thresholds and new operational risks. This requires reassessing internal controls during integration and ensuring new processes meet compliance standards.

4. Third-Party Risk Management: Ensuring that vendors and partners meet your cybersecurity and compliance requirements is a growing focus. Continuous monitoring of third-party operations will be essential to protect financial data and maintain SOX compliance.

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SOX compliance is evolving rapidly with a heightened focus on cybersecurity, automation, mergers, and third-party risk management. IT and security leaders play a pivotal role in ensuring their organizations meet these evolving requirements, from securing financial data against cyber threats to optimizing internal controls through automation. As SOX audits become more rigorous, preparing ahead by strengthening controls and leveraging technology is crucial for compliance success. Ready to streamline your SOX compliance process and stay audit-ready? Book a Lumos demo today and discover how our platform can help you simplify controls management, automate workflows, and achieve compliance with ease.