Sarbanes-Oxley compliance

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In today’s globalised economy, regulatory compliance is no longer just a checkbox, it’s a strategic imperative for building investor trust and driving sustainable growth.

At Grant Thornton Bharat, we deliver tailored SOX compliance solutions that help organisations navigate the complexities of the SOX Act, ensuring strong financial oversight, effective risk management, and enhanced stakeholder confidence. Backed by a team of experienced professionals with deep regulatory knowledge and industry best practices, we deliver a robust SOX compliance framework that empowers your business to thrive in a global marketplace.

Let us help you turn compliance into a competitive advantage — so you can focus on what you do best: growing your business.

What is SOX compliance?

The Sarbanes-Oxley Act (SOX), enacted by the US Congress in 2002, is a landmark regulation aimed at protecting investors from corporate fraud and ensuring the integrity of financial reporting. It sets strict requirements for internal controls, financial disclosures, and accountability for companies listed on US stock exchanges, as well as their global subsidiaries.

SOX compliance is applicable for:

A public accounting firm.
A company which has applied for registration under Securities Act 1933 and has not withdrawn the registration.
All publicly traded companies in the U.S. and their subsidiaries.
Non-U.S. companies listed on U.S. stock exchanges or filing reports with Securities and Exchange Commission, must comply with SOX regulations.
While private companies are generally not required to comply with SOX, certain provisions may become applicable if they plan to go public or engage with SOX-compliant entities.

Why Indian businesses need SOX compliance

For Indian companies listed on US exchanges, SOX compliance is a legal requirement. But even beyond regulatory mandates, Indian subsidiaries of US-listed companies must often align with SOX standards for consolidated reporting. Additionally, Indian firms seeking to attract global investors are increasingly adopting SOX-like practices to strengthen transparency, governance, and trust.

The importance of SOX compliance

Implementing SOX compliance helps businesses build a strong foundation for financial governance and long-term credibility.

Corporate governance

Strengthens accountability and transparency in financial reporting.

Financial transparency

Ensures accurate and complete financial disclosures.

Investor confidence

Reassures investors of reliable financial statements, enhancing credibility.

Internal controls

Mandates assessment and improvement of financial controls to prevent fraud and errors.

The risks of SOX non-compliance

Failure to comply with SOX can lead to legal, financial, and reputational consequences for companies and executives.

Financial penalties

Significant fines for companies and individuals.

Legal consequences

CEOs and CFOs can face criminal liability and imprisonment for submitting false financial reports.

Loss of investor confidence

Erosion of trust, share price declines, and potential loss of funding.

Regulatory actions

Sanctions, leadership bans, and audits by bodies such as the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB).

Operational disruption

SOX audit failures can lead to costly financial control restructures and distract management from core business priorities.

How Grant Thornton Bharat can help

We offer end-to-end SOX compliance solutions to help you strengthen financial governance systems, ensure robust risk control mechanisms, and support effective SOX 404 documentation and testing to reinforce compliance and operational efficiency.

Our services include:

Conducting walkthroughs, design-level and transaction-level testing for validation.

Designing/updating detailed risk control matrices (RCM), process narratives, and flowcharts for structured risk management.

Detecting gaps in financial and operational processes, recommending corrective actions for compliance and risk mitigation.

Ensuring robust oversight mechanisms and adherence to SOX-mandated financial disclosure requirements.

Assessing and enhancing financial controls to prevent fraud and misrepresentations in financial statements.

Recommending security measures to protect financial data integrity and prevent unauthorised access.

Why choose Grant Thornton Bharat

Our SOX compliance experts combine deep regulatory expertise, industry best practices, and a collaborative approach to deliver solutions that work. We partner with you every step of the way—designing, implementing, and optimising your SOX programme for long-term success.