Although SOX compliance is designed for corporations, it is good business practice for organizations of all shapes and sizes to incorporate.Â SOX compliance is focused on transactional tractability and business practice transparency. These attributes are important when building trust and establishing a positive brand.
Some benefits of implementing SOX compliance include:
- Comprehensive process documentation
- Higher confidence during internal and external audits
- Increased operational efficiency
- Internal Controls limit unexpected consequences
- Reduced training time for new employee
Internal controls are a necessity in daily business operations.Â They provide checks and balances to ensure that processes are performed correctly.Â When errors occur, there indicators and/or reporting available to help resolve issues quickly. Internal controls mitigate five types of risk: