What is the Sarbanes Oxley Act of 2002?
The Sarbanes Oxley legislation was enacted in 2002 and primarily affects public owned companies. The primary purpose of the legislation was to make companies provide a check and balance system for their employees and stockholders. There are a number of different requirements that companies now have to follow that make their financial information more transparent and less open to fraud. There are also new reporting requirements that came along with this legislation. The hope was to prevent future disasters such as what happened with the collapse of Enron.
