silverheart111's Trail

Also known as the "Public Company Accounting Reform and Investor Protection Act of 2002", also referred to as SOX or Sarbox. This act was introduced in July 2002, named after Senator Paul Sarbanes and Representative Michael G. Oxley, in response and to prevent future corporate and accounting scandals.

This act is a form of financial practice and corporate governance, just like any other federal business laws, the SOX has a number of deadline for compliance and  is aimed to regulate both small and large organizations.

Due to the failure of previous large organizations like Enron and WorldCom in which they mislead their investors with untruthful and fraud information. The Sarbanes-Oxley is to prevent just that, it protects investors by providing accurate and reliable corporate disclosures so investors have the initiative decision whether to keep investing or not.

The criteria of the Sarbanes-Oxley Act:
Public companies are required to meet the financial reporting and certification mandates for any end of year financial statements filed at the given date.

SOX is organized into 11 titles that describe the intention and compliance required by the act.

The act also created an accounting board company that adheres to the accounting processes for the act.
 
The act information can easily be accessed by the public or media.