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 ?
But that market penalty is reversed--and capital costs are lower--after Sarbanes-Oxley compliance enables companies to prove to investors they have maintained or established solid financial systems.
Lower Insurance and Risk Costs: A by product of Sarbanes-Oxley compliance is accountability at all levels of the firm.
So with spreadsheets as one of the most likely points of failure in Sarbanes-Oxley compliance, how does the organization ensure their accuracy?
And once the company begins complying with Sarbanes-Oxley section 404, which requires the documentation and testing of internal financial controls, he will be in charge of that effort as well.
As a Sarbanes-Oxley compliance consultant, Stephen Stanton is a man whose self-interest should encourage him to praise the law.
Many companies that don't have to comply with Sarbanes-Oxley are finding it to their benefit to implement IT best practices," says Rogelio Montekio, country marketing director, Computer Associates, Mexico City.
Unfortunately, compliance to Sarbanes-Oxley may be an added cost to public corporations, with no major gain to their bottom line.
But drafting an impressive list of calls for exemptions for EU auditing firms under the Sarbanes-Oxley Act is one thing.
inform the reader of related legal and business developments, such as litigation, regulatory actions, or similar activities, insofar as they affect information management and Sarbanes-Oxley compliance
The success of the Sarbanes-Oxley telephone seminar underscores that TEI has to go where the market is for delivery of continuing education.
com, a leading provider of public company intelligence and due diligence research, announces the availability of its Sarbanes-Oxley Data Feeds Package for institutional investors and money managers.
The questions above can be summarized as: do restatements mean Sarbanes-Oxley is working?