SARBANES-OXLEY

Sarbanes-Oxley (SOX) is the US federal Public Company Accounting Reform and Investor Protection Act of 2002 (P.L. 107-204), mandating personal executive accountability and independent audit of internal financial controls — including those supporting critical EDI flows.

Definition

Title IV section 404 of SOX requires management to certify internal controls over financial reporting. For US-listed companies whose revenue relies on EDI flows (810 Invoice, MT 940 reporting), this mandates immutable audit trails, EDI-gateway access controls and reliable activity logs.

Origin

Signed into law on 30 July 2002 by President G.W. Bush after the Enron, WorldCom, Tyco scandals. Administered by the SEC and the PCAOB (Public Company Accounting Oversight Board).

Use

An NYSE-listed company carrying its 810 and 850 flows must prove the absence of unaudited modifications to amounts between reception and posting. Tools: WORM (Write Once Read Many) immutable log, crypto signatures, segregation of duties.

Related terms

• Audit trail — direct requirement.
• Activity log — direct requirement.
• Non-répudiation — direct requirement.
• Trading partner — scope.