What is SOX?
The Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal law that establishes requirements for corporate financial transparency, internal control, and data integrity. Originally enacted to restore public trust after a series of high-profile financial scandals, SOX mandates strong internal controls over financial reporting and creates direct accountability for executives.
The regulation applies to all public companies in the United States as well as their external auditors. While its primary focus is financial reporting, SOX places significant emphasis on IT systems and processes because financial data depends on the reliability and security of the systems that generate it.
Two key sections, 302 and 404, define the operational structure of SOX compliance. Section 302 requires CEOs and CFOs to personally certify the accuracy of financial statements and the effectiveness of internal controls. Section 404 mandates both internal and independent external audits of those controls. Together, these requirements elevate IT governance to a core part of financial accountability.
Need to strengthen IT controls for SOX compliance? Learn how Tufin helps enforce access control, change management, and audit documentation across financial systems. Request a Demo!
SOX Requirements
SOX defines multiple requirements related to internal control over financial reporting (ICFR). Tufin supports enforcement of the IT General Controls (ITGCs) that underpin this system, including access control, change management, and data integrity. These areas align directly with audit expectations under Sections 302 and 404.
Access Control
SOX requires that access to financial systems be restricted to authorized users based on job role and business need. This is based on the principle of least privilege and includes both logical access and physical safeguards. Periodic user access reviews must be conducted to ensure permissions remain appropriate.
Change Management
Any changes to systems that store or process financial data must be controlled, tested, documented, and approved before implementation. This includes application-level changes as well as network and firewall rules that could affect data flow or access.
Audit Logging and Monitoring
All activity affecting financial systems must be logged and monitored for compliance. Organizations must retain logs, enforce segregation of duties, and provide audit trails showing who made each change and when.
Data Integrity and Configuration Assurance
IT systems must be designed and maintained in a way that ensures data is protected from unauthorized alteration. This includes controls that prevent unapproved access or misconfiguration, especially in systems that affect financial reporting.
Executive Accountability and Control Attestation
Executives are legally required to certify that internal controls are effective. To do this, they need documented proof that IT controls are defined, enforced, and reviewed regularly.
Tufin and SOX Compliance
Tufin helps organizations define and implement network access controls needed to meet SOX requirements. You can manage access policies, control changes, monitor enforcement, and generate audit-ready reports.
Restrict access based on job role and justification
Tufin provides administrators with clear visibility into policies and other controls governing access to applications and other network assets. The business justification for every network access policy can be recorded in Tufin or the Rule Lifecycle Management App.
Control configuration changes and reduce risk
With Tufin, you can evaluate the compliance and riskiness of every proposed configuration change before it is implemented. You can simulate the effect of the change, and triage high-risk or non-compliant requests to a manager for approval.
SecureChange provides a clear and comprehensive audit trail of all policy modifications and approvals.
Monitor enforcement and generate audit trails
Tufin tracks every policy change across firewalls, routers, and cloud platforms. Each change is linked to the requestor and timestamped for audit review.
This helps demonstrate network access control effectiveness and supports evidence-based compliance.
Maintain a continuous state of readiness
Tufin enables reporting on segmentation policies, compliance violations, and access policy change activity across the hybrid network. Executives can certify the effectiveness of IT controls based on full visibility into enforcement and change history.
