What is the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 (SarbOx or SOx for short), was legislation passed in the wake of the Enron and WorldCom financial scandals to protect stockholders and the public from fraudulent accounting practices. SarbOx sets forth what accounting records should be kept and for how long. The act is named after its two sponsors, Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH).
