SOX Audit & Compliance

Internal Controls Testing Aligned with Sarbanes-Oxley Standards

Companies with US-listed parents, subsidiaries, or ADR exposure are often required to comply with Sarbanes-Oxley (SOX) internal control requirements, covering documentation, testing, and remediation of controls over financial reporting.

We support Indian entities within US-linked corporate groups in designing, documenting, and testing internal controls over financial reporting in line with SOX 404 requirements.

Our SOX Audit & Compliance Services

Internal Control over Financial Reporting (ICFR) Design

Designing controls over financial reporting processes.

SOX 404 Control Testing

Testing the design and operating effectiveness of key controls.

Risk & Control Matrix (RCM) Development

Developing risk and control matrices mapping risks to controls.

Deficiency Identification & Remediation Support

Identifying control deficiencies and supporting remediation.

Process Documentation & Walkthroughs

Documenting processes and conducting control walkthroughs.

Coordination with External Auditors

Coordinating SOX testing evidence and documentation with external auditors.

Why SOX Audit & Compliance Matters

Strengthens the reliability of financial reporting
Required for subsidiaries of US-listed parent companies
Reduces the risk of material weaknesses being reported
Improves audit efficiency through well-documented controls
Builds investor and parent-company confidence
Supports broader corporate governance objectives

Frequently Asked Questions

What is SOX compliance and who does it apply to?

SOX compliance refers to internal control requirements under the US Sarbanes-Oxley Act, applicable to US-listed companies and, by extension, their subsidiaries and operations worldwide, including in India.

Do Indian subsidiaries of US-listed companies need to comply with SOX?

Yes, Indian subsidiaries of US-listed parent companies are generally required to maintain and test internal controls over financial reporting as part of the parent's consolidated SOX compliance.

What is the difference between SOX 302 and SOX 404?

SOX 302 relates to certification of disclosure controls by company officers, while SOX 404 requires management assessment and, for larger companies, external auditor attestation of internal control effectiveness.

What is a Risk & Control Matrix (RCM) in SOX compliance?

An RCM maps identified financial reporting risks to the specific controls designed to mitigate them, forming the basis for control testing and documentation.

How often should SOX control testing be performed?

Key controls are generally tested at least annually, with certain controls tested more frequently depending on their nature and the risk they address.

Talk to Our SOX Audit & Compliance Team

From assessment to execution, we help you navigate sox audit & compliance with clarity and compliance.

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