How Ledger Architecture Can Support SOX 404 and 802 Controls

Organizations are responsible for their own legal obligations, which depend on their circumstances. Ledger software can support the internal controls and record-retention practices an organization operates, tests, and explains.

SOX 404 and segregation of duties

Section 404 focuses on the effectiveness of internal controls over financial reporting. In ledger terms, segregation of duties keeps posting, approval, and reversal responsibilities distinct.

LedgerWriter enforces the role check in the server-side command handler. A ReverseJournalEntry command checks the caller’s role before processing the request.

SOX 802 and record retention

Section 802 addresses records relevant to federal investigations. Organizations use retention policies and controls to meet the requirements that apply to them.

LedgerWriter keeps its primary ledger history in an append-only event store. A correction posts a new reversing entry, and the event stream supplies the record from which current views are built.

Ask how the control is enforced

Due diligence benefits from clear questions: Where does a role check happen? How does a correction appear in the record? What data supplies the audit history? Those answers show how a control operates in day-to-day work.