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Sarbanes-Oxley (SOX) Overview
What is the Sarbanes Oxley Act?
- US law passed 2002 to strengthen Corporate governance
and restore investor confidence.
- Sponsored by US Senator Paul Sarbanes and US
Representative Michael Oxley.
- Passed in response to a number of major corporate and
accounting scandals involving prominent companies in the United States.
- 11 sections ranging from additional Corporate Board
responsibilities to criminal penalties.
What does Sarbanes Oxley Address?
- Sarbanes Oxley Act Establishes new standards for
Corporate Boards and Audit Committees
- Sarbanes Oxley Act Establishes new accountability
standards and criminal penalties for Corporate Management
- Sarbanes Oxley Act Establishes new independence
standards for External Auditors
- Sarbanes Oxley Act Establishes a Public Company
Accounting Oversight Board (PCAOB) under the Security and Exchange Commission
(SEC) to oversee public accounting firms and issue accounting standards
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