Security & Compliance

  • 4 min read

SOX User Access Reviews for Publicly Traded Companies

Rohit Rao

5th March, 2024

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Access reviews play a crucial role in ensuring compliance with the Sarbanes-Oxley Act (SOX) for publicly traded companies. Enacted to enhance transparency and accountability in financial reporting, SOX relies on access reviews as a vital component to achieve its objectives.

For publicly traded companies, conducting access reviews is integral to ensuring accurate financial reporting, safeguarding sensitive data, and reducing security risks. In the U.S., SOX compliance is a legal mandate, and incorporating user access review enhances data security by restricting access to authorized users. This not only minimizes the risk of data breaches but also fosters trust among investors and stakeholders. 

Adhering to user access review processes is essential for meeting SOX regulatory obligations, preventing legal consequences, and mitigating potential penalties for non-compliance.

If you're curious about the consequences or what may transpire in the event of non-compliance, consider the following recent incident.

On October 30th, a significant event unfolded in the intersection of cyber issues and legislation. The U.S. Security Exchange Commission (SEC) took legal action against SolarWinds, the software company linked to major breaches, including the 2021 Colonial Pipeline shutdown. 

The SEC filed fraud charges against SolarWinds based on the statements made by the company on IPO registration forms, the security statement published on the company's website, and the public 8-K filing.

What makes this case notable is that the SEC didn't just charge SolarWinds but also Timothy Brown, the company's top security executive. The complaint alleges that from October 2018 to atleast January 12th, 2021, SolarWinds and Tim Brown provided misleading information about the company's cybersecurity practices.

The SEC claims that SolarWinds and Tim Brown misrepresented several security aspects, including:-

•  their password policies, 

• software development process security, 

• and policies for determining internal data access (access reviews). 

This means that not adhering to security standards can result in financial consequences for the company and legal actions against responsible executives. Executives can be held accountable and prosecuted if there are security breaches or non-compliance issues.

How Do User Access Reviews Save You From Non-Compliance Incidents?

User access reviews play a crucial role in preventing non-compliance incidents by addressing key access management aspects. Here's how they directly contribute to saving an organization from non-compliance:

• Identification of Unauthorized Access

User access reviews systematically examine who has access to what within an organization. By doing so, they identify and rectify instances of unauthorized access, ensuring that individuals only have access to the resources necessary for their roles. This proactive approach prevents non-compliance incidents stemming from unauthorized usage.

• Alignment with Regulatory Requirements

Compliance with regulations like Sarbanes-Oxley (SOX) often requires organizations to monitor and control user access. User access reviews directly align with these regulatory requirements by providing visibility into access permissions. This ensures the organization adheres to stipulated standards, preventing potential non-compliance issues.

• Mitigation of Insider Threats

Insider threats, including privilege abuse and unauthorized access, significantly contribute to non-compliance incidents. User access reviews help mitigate these threats by regularly evaluating access permissions. This process identifies and addresses issues like access creep or unauthorized access, reducing the risk of insider-related non-compliance incidents.

• Documentation of Access Changes

Automated user access reviews often include documentation features, recording any changes made to access permissions. This documentation serves as an audit trail, providing evidence of compliance efforts. In case of an audit or inquiry, having a clear record of access changes helps demonstrate proactive measures to adhere to regulations, saving the organization from non-compliance consequences.

• Prevention of Data Breaches

User access reviews contribute to preventing data breaches by ensuring access rights are appropriately assigned and monitored. Unauthorized access, if left unchecked, can lead to data breaches, resulting in severe non-compliance implications. By regularly reviewing and restricting access, user access reviews act as a safeguard against such incidents.

• Timely Identification of Anomalies

Anomalies in user access patterns can indicate potential security threats or non-compliance issues. User access reviews, especially when automated, facilitate the timely identification of these anomalies. Prompt action can then be taken to investigate and rectify any issues, preventing non-compliance incidents before they escalate.

In short, user access reviews directly save your organization from non-compliance incidents by proactively managing and monitoring access permissions. This ensures alignment with regulatory requirements and mitigates the risks associated with unauthorized access, insider threats, and data breaches. The systematic and regular user access review is crucial in maintaining a secure and compliant operational environment.

Zluri: Simplifying Access Reviews for You

In the past, reviewing access manually had its challenges. With so many user accounts and permissions, it was easy to miss important details or grant access by mistake. That's where Zluri comes in, providing an automated access review solution that offers a comprehensive and streamlined approach to this essential security practice. Zluri's user access review effortlessly manages and evaluates user access and permissions.

Zluri makes access certification simple by letting you schedule it in advance. Once you obtain crucial insights, you can take action by setting up certification tasks. These tasks ensure that employees' access follows the company's rules and regulations. By doing scheduled access reviews, you ensure access stays up-to-date and follows the right standards.

Zluri's automated reviews cut down the manual work by 70%, making the process 10 times faster. This intelligent automation manages responsibilities such as gathering data, organizing access details, and scrutinizing patterns. As a result, it provides you with peace of mind, assurance of compliance, and safeguards against potential security breaches. This means your IT team can focus on important things instead of spending too much time on routine tasks.

How Zluri Stands Out?

Zluri stands out from other products in the market in several key ways:

• Extensive Integrations

While some competitors have limitations on the number of integrations or charge extra for each one, Zluri provides over 800+ direct integrations with a wide range of SaaS tools. This extensive integration capability ensures comprehensive automation and access to diverse data points without incurring additional or hidden costs.

• Affordable Pricing for Mid-Size Companies

Zluri addresses the pricing accessibility challenges faced by mid-size companies with a model that ensures affordability and eliminates the need for additional Single Sign-On (SSO) taxes. This makes Zluri a cost-effective solution for businesses of varying sizes.

• No Extra or Hidden Costs

Unlike certain competitors that may charge extra for integrations or have hidden fees, Zluri offers transparency in its pricing structure. Users can benefit from the full range of features and integrations without worrying about unexpected costs.

• Efficient Certification Acceleration

Zluri accelerates the certification process by allowing users to create automated policies. These policies perform access reviews autonomously, ensuring a streamlined certification procedure. The platform also facilitates continuous reviews by providing instant notifications for all new access changes.

Furthermore, Zluri's automated remediation promptly handles instances of unnecessary access. Access can be swiftly revoked in this process, effectively reducing potential security vulnerabilities. 

So why wait? Schedule a demo right away & witness Zluri in action!

About the author

Rohit Rao

Rohit works in the Community and Marketing Team of Zluri and is a strong advocate of community led growth.