1. SOX AND INTERNAL CONTROL IMPORTANCE OF SOX CONTROL Purpose of SOX Controls – Designed to protect investors by ensuring the accuracy and reliability of financial reporting and preventing corporate fraud. Key Sections –Section 302 (CEO/CFO certification of financial statements) and Section 404 (management and auditor assessment of internal controls) are core to SOX compliance. Types of Controls – Includes entity-level controls, IT general controls (ITGC), application controls, and process-level controls impacting financial reporting. Testing and Documentation – Companies must document, test, and maintain evidence of control effectiveness for annual audits and compliance reviews. Benefits Beyond Compliance – Strong SOX controls improve transparency, reduce fraud risk, enhance investor confidence, and strengthen corporate governance. ROLE OF SOX CONTROL Process Improvement – Internal audits identify inefficiencies and recommend improvements to strengthen business processes. Robust Control Environment – They help establish adaptable controls that respond to regulatory changes. Enhanced Communication –Facilitate better interaction between departments and the audit committee for informed decisions. Governance Support – Strengthen governance structures through transparency and risk management. Strategic Value – Evolve from compliance support to a key driver of business performance and long-term value creation. At SKMC Global ensures SOX compliance and strong internal controls through expert audits, risk assessment, and control optimization—driving accuracy, compliance, and governance. +91 989-125-5499 info@skmcglobal.com www.skmcglobal.com