Sarbanes-Oxley Act

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Sarbanes Oxley Act of 2002

Legislation in the United States, passed in 2002, intended to increase transparency in accounting practices. It was adopted in the wake of a series of scandals involving aggressive accounting on the part of a number of major accounting firms, notably Arthur Andersen. Among other provisions, it created the Public Accounting Oversight Board to regulate accounting firms that provide auditing services. It established and enhanced provisions for auditor independence and financial disclosures to limit potential conflicts of interest. It introduced a requirement that the chief executive officer must sign a corporation's tax return and enhanced punishments for white collar crime. Proponents argue that the Act has increased transparency in public accounting, while critics contend that it has driven business outside the United States.

Sarbanes-Oxley Act

The congressional legislation that regulates certain corporate financial activities and improves the accuracy of financial statements. Among other things, the act prohibits personal company loans to directors and officers, requires certification of financial statements by a firm's chief executive officer and chief financial officer, protects employee whistle-blowers, increases criminal penalties for securities law violations, requires disclosure of off-balance-sheet financing, and calls for improvement in the accuracy of pro forma financial statements. The act was passed in 2002 in response to widely publicized corporate accounting scandals.

Sarbanes-Oxley Act

see CORPORATE GOVERNANCE.

Sarbanes-Oxley Act

see CORPORATE GOVERNANCE.
References in periodicals archive ?
Sarbanes Oxley (commonly known as "SOX") was enacted largely in response to the large number of corporate and accounting scandals in the last few years involving some of the most prominent companies in the U.
As more and more of these public companies are required to phase in their compliance with Sarbanes Oxley in the next 12 months, we expect this market opportunity to represent a large and lucrative profit center for SWK.
Sarbanes Oxley was enacted largely in response to the large number of corporate and accounting scandals in the last few years involving some of the most prominent companies in the U.
Certus addresses the full range of compliance with Sarbanes Oxley Sections 302 and 404 and is designed to allow Fortune 500 companies to implement the full COSO framework.
The alliance enables customers to align people, processes and technology, giving them a cost effective practical compliance solution for Sarbanes Oxley regulation.
These new customers join OpenPages' growing customer base of Fortune 1000 customers that have selected Sarbanes Oxley Express since its release earlier this summer, including Volt Information Sciences.
We believe the proposed standards are an appropriate response to the Sarbanes Oxley Act and would raise the bar on public company audits to the ultimate benefit of the investor.