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 ?
authorities will cooperate under the Sarbanes-Oxley Act with their European counterparts with a view to the emerging future oversight structures of EU member states.
Sarbanes-Oxley for Small Businesses equips small business owners to understand and comply with the implications of the Sarbanes-Oxley Act (SOX) and adapt the best practices for their businesses.
In Section 409 of the Sarbanes-Oxley Act, publicly traded corporations are required to "disclose to the public on a rapid and current basis" any material changes in the organization's financial condition.
Technology is a vital component to any organization in assisting it to comply with the Sarbanes-Oxley Act of 2002.
The policy clarifies that the agencies do not expect to take steps to apply the board's composition, director independence, audit committee, auditor independence and other corporate governance requirements of the Sarbanes-Oxley Act to non-public banking organizations that are not otherwise subject to these requirements.
The final role, like the interim role it replaces, requires such state member banks to comply with any roles adopted by the Securities and Exchange Commission under designated sections of the Sarbanes-Oxley Act.
The speakers discussed the Sarbanes-Oxley Act of 2002 and other corporate accountability reforms such as new and pending SEC rules and NYSE and Nasdaq corporate governance reforms.
Even before the unanimous passage of the Sarbanes-Oxley Act of 2002, CFOs, auditors and audit committees have been scrutinizing their relationships, looking for best practices that will quell investor fears, stabilize a volatile market and rebuild trust in the profession.
Pegasus Wireless Corporation (Nasdaq:PGWC), a leading provider of advanced wireless solutions, announced today that the Company has embarked on an initiative for sustainable compliance with the Sarbanes-Oxley Act and ISO quality standards using MetricStream.
Auditors in need of resources on compliance can register for free at this e-portal's Sarbanes-Oxley Act Community Forum to facilitate the exchange of information and organize site data they wish to save in their own Web-based personal profile box, or get pertinent news items delivered to it.
Synopsis: A comprehensive guide to Section 404 of the Sarbanes-Oxley Act, which requires companies to document and report on internal controls over financial reporting.