Sarbanes-Oxley Act Of 2002 - SOX

Sarbanes-Oxley Act Of 2002 - SOX
An act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act (SOX) mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud. SOX was enacted in response to the accounting scandals in the early 2000s. Scandals such as Enron, Tyco, and WorldCom shook investor confidence in financial statements and required an overhaul of regulatory standards.

The rules and enforcement policies outlined by the SOX Act amend or supplement existing legislation dealing with security regulations. The two key provisions of the Sarbanes-Oxley Act are:

1. Section 302: A mandate that requires senior management to certify the accuracy of the reported financial statement
2. Section 404: A requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls. Section 404 had very costly implications for publicly traded companies as it is expensive to establish and maintain the required internal controls.


Investment dictionary. . 2012.

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  • Sarbanes-Oxley Act of 2002 — / Sarbanes Oxley / SOX/ Sarbox / Public Company Accounting Reform and Investor Protection Act of 2002 A US statute which became law on 30 July 2002. The Act makes substantial changes to the regulation of the accounting profession and includes… …   Law dictionary

  • Sarbanes-Oxley Act — The Sarbanes Oxley Act of 2002 (USStatute|107|204|116|745|2002|07|30), also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; is a United States federal law enacted on July 30,… …   Wikipedia

  • Sarbanes-Oxley-Act — Der Sarbanes Oxley Act of 2002 (auch SOX, SarbOx oder SOA) ist ein US Bundesgesetz, das als Reaktion auf Bilanzskandale von Unternehmen wie Enron oder Worldcom die Verlässlichkeit der Berichterstattung von Unternehmen, die den öffentlichen… …   Deutsch Wikipedia

  • Sarbanes Oxley Act — Der Sarbanes Oxley Act of 2002 (auch SOX, SarbOx oder SOA) ist ein US Bundesgesetz, das als Reaktion auf Bilanzskandale von Unternehmen wie Enron oder Worldcom die Verlässlichkeit der Berichterstattung von Unternehmen, die den öffentlichen… …   Deutsch Wikipedia

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  • Sarbanes-Oxley Act — The Sarbanes Oxley Act of 2002, was signed into law by U.S. President George W. Bush and became effective on July 30, 2002. The Act contains sweeping reforms for issuers of publicly traded securities, auditors, corporate board members, and… …   Financial and business terms

  • Sarbanes-Oxley Act — n. A federal law passed in 2002 that increased auditing and reporting requirements for corporations. abbrv. Sarbox, SOX The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • Sarbanes-Oxley Act — 30 июля 2002 г. Президент Буш подписал Закон Сарбейнза Оксли (англ. Sarbanes Oxley Act), который представляет собой одно из самых значительных событий по изменению федерального законодательства США по ценным бумагам за последние 60 лет.… …   Википедия

  • Sarbanes-Oxley — Act of 2002 / Sarbanes Oxley / SOX/ Sarbox / Public Company Accounting Reform and Investor Protection Act of 2002 A US statute which became law on 30 July 2002. The Act makes substantial changes to the regulation of the accounting profession and… …   Law dictionary

  • Sarbanes-Oxley — Der Sarbanes Oxley Act of 2002 (auch SOX, SarbOx oder SOA) ist ein US Bundesgesetz, das als Reaktion auf Bilanzskandale von Unternehmen wie Enron oder Worldcom die Verlässlichkeit der Berichterstattung von Unternehmen, die den öffentlichen… …   Deutsch Wikipedia

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