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What does SOX mean how is SOX compliance determined?

SOXSOX stands for the Sarbanes-Oxley Act, a 2002 law Congress passed to increase accountability in the financial sector. The law helps ensure public companies engage in non-deceptive business accounting practices.

SOX offers several data storage & security-related compliance requirements in sections 302 and 404 of the law, which provide as follows:

  • Under Section 302, company officers are required to maintain internal auditing procedures for business accounting practices, as well as disclose any flaws that could compromise the corporation’s ability to record, summarize, process and report financial data.
  • Under Section 404, companies must send reports to the SEC that describe, and assess the effectiveness of, their internal control structures and procedures for financial reporting.

Maintaining and encrypting sensitive customer data and financial information can help companies become SOX-compliant, while non-compliance can result in penalties up to $5 million or up to 20 years of prison time.

How does SOX data center & cloud hosting work?

Abacus Private Cloud helps your organization become SOX-compliant by storing your organization’s sensitive data on an expansive network of data centers are SSL-A certified data centers. We also use two-factor authentication, 256-AES encrypted platform connections, and five-tiered security safeguards to protect your data. All of these will help you establish to the SEC that your internal control programs are up to snuff with SOX.

How can I audit & maintain compliance with SOX hosting?

We use robust SSAE-16 SOC auditing and monitoring procedures to ensure that you have the internal control and reporting procedures necessary to ensure seamless, transparent and accurate accounting.

Are there Abacus clients that are SOX compliant today?

Many clients currently use Abacus Private Cloud to ensure compliance with SOX and other regulations. Contact our SOX compliance hosting specialists to see how Abacus Private Cloud can help your organization remain SOX-compliant.


Additional Resources

  1. The complete SOX act