Abstract

This review presents a conceptual framework for integrating Sarbanes-Oxley Act (SOX)-compliant financial systems within multinational corporate governance structures. The Sarbanes-Oxley Act, enacted in 2002, significantly reshaped corporate governance and financial reporting in the United States, introducing stringent requirements for internal controls, financial transparency, and accountability. While initially designed for U.S. companies, the global expansion of multinational corporations (MNCs) has necessitated a broader application of SOX compliance across various jurisdictions. The review explores the challenges that multinational corporations face when integrating SOX-compliant financial systems, particularly the diverse regulatory environments, differences in financial reporting standards, and the complexity of aligning local subsidiaries with a unified compliance framework. It emphasizes the critical role of internal control systems, financial reporting requirements, audit trails, and risk management in ensuring compliance with SOX regulations. Furthermore, the review highlights how technology solutions such as Enterprise Resource Planning (ERP) systems, automation tools, and centralized financial management platforms can streamline compliance processes across multiple jurisdictions. A significant aspect of the conceptual framework is the strategic alignment of SOX compliance with corporate governance structures, ensuring that compliance is not a standalone function but embedded into the core governance practices of multinational organizations. This framework proposes a holistic approach, incorporating cross-functional collaboration among finance, legal, and IT departments to ensure effective implementation. Through case studies and best practices, the review illustrates successful SOX integration strategies and the lessons learned from multinational corporations that have navigated the complexities of compliance. Lastly, the review discusses future research areas and the potential impact of emerging technologies like artificial intelligence and blockchain in enhancing SOX compliance in a rapidly evolving global business environment.