What is the Sarbanes-Oxley Act of 2002?
The Sarbanes-Oxley Act of 2002, sometimes referred to as SOX, is a legislative response to the accounting scandal caused by the fall of some publicly held companies and the perceived excesses of the management of some other companies. Sarbanes-Oxley requires compliance with a comprehensive reform of accounting procedures for publicly held corporations to promote and improve the quality and transparency of financial reporting by both internal and external independent auditors. The Public Company Accounting Oversight Board (PCAOB) is charged with enforcing SOX compliance through the Securities and Exchange Commission (SEC). Source: legalterm.com For more detailed information, visit: http://www.sec.gov/divisions/corpfin/faqs/soxact2002.htm.
