oboloo Glossary

Sox Compliance Accounts Payable

oboloo Glossary

Sox Compliance Accounts Payable

The Sarbanes-Oxley Act (SOX) is a law that was enacted in 2002 to protect investors from fraudulent financial reporting. It requires public companies to maintain accurate and reliable financial records and to adhere to certain standards of corporate governance. One of the areas of compliance that SOX requires is Accounts Payable. This involves the proper management of accounts payable transactions, including the timely payment of invoices, accurate recording of payments, and proper authorization of payments. SOX compliance for Accounts Payable requires companies to have a system in place to ensure that all accounts payable transactions are accurately recorded and reported. This includes a system of internal controls that must be regularly monitored and updated to ensure that all accounts payable transactions are properly authorized and documented. Companies must also ensure that all accounts payable transactions are in compliance with the SOX requirements, including the timely payment of invoices, accurate recording of payments, and proper authorization of payments. By adhering to the SOX requirements for Accounts Payable, companies can ensure that their financial records are accurate and reliable, and that their investors are protected from fraudulent financial reporting.