SOX Compliance
Adhering to the Sarbanes-Oxley Act requirements for financial controls and documentation.
Definition
SOX (Sarbanes-Oxley Act) compliance requires public companies to maintain adequate internal controls over financial reporting. In AP, this includes segregation of duties, approval controls, audit trails, and documentation of all processes.
Why It Matters
Non-compliance can result in fines, restatements, and personal liability for executives. Proper AP controls are a key component of SOX compliance.
Examples
Segregation of duties
Person who creates vendors cannot also approve payments. Enforced through system controls.
Approval documentation
Every invoice over $10K has documented approval from appropriate authority before payment.
How Nexus AP Helps
Nexus AP enforces segregation of duties, maintains complete audit trails, and provides documentation required for SOX audits. Controls are built into the system.
Start Free TrialFrequently Asked Questions
Does AP automation help with SOX compliance?
Yes, AP automation enforces controls consistently, maintains audit trails automatically, and provides documentation auditors need.
What AP controls are required for SOX?
Key controls include segregation of duties, approval limits, vendor master controls, and payment authorization procedures.
Ready to automate your AP?
See how Nexus AP can transform your accounts payable process.