Sarbanes-Oxley Act
Post-Enron financial regulation
The Sarbanes-Oxley Act is a 2002 U.S. federal law enacted after major corporate accounting scandals at Enron, WorldCom, and other companies.
Often called SOX or Sarbox, it established stricter financial reporting requirements, created the Public Company Accounting Oversight Board, and imposed criminal penalties for fraudulent accounting.
The company had to overhaul its internal controls to comply with Sarbanes-Oxley.
- board of directorsGoverning body of organization
- internal controlsOrganizational oversight procedures
- audit trailsRecorded history of actions
- white collar crimeNonviolent financial wrongdoing
- public companyStock-traded business entity
fiduciary duty · financial statements · financial reporting · executive compensation · Enron scandal · corporate accountability · corporate governance · whistleblower protections · legal compliance · shareholder rights · investor confidence · accounting standards · boardroom · shareholders · reporting · Enron · Congress · reform
Sarbanes-Oxley Actcreative accounting
Misleading financial reporting
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