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 ?
SARBOX does not regulate non-profits but is a wake up call for good governance for all organizations with outside stakeholders.
One CEO has had front-line experience on both sides of the IT-finance battleground, and he says that many CFOs would like to see CIOs left out of the Sarbox equation.
based Arrow Electronics since 2001, and through the turbulent Sarbox changes, he points to the solid, open communication he enjoys with CEO Bill Mitchell.
But many of America's regulatory problems go beyond Sarbox.
SarbOx probably won't cripple the American economy, any more than the Clean Air Act or the Americans with Disabilities Act did.
At some point, investors will get burned by companies not adhering to Sarbox standards and desert that market.
Although generally supportive of easing the pain of Sarbox, the draft report suggests a new test for whether Section 404, which mandates internal controls that can be tested by outside auditors, should be applied.
Repository for internal The application SarbOx Portal control documentation, provides functionality evaluation and testing.
Compliance with Sarbox has caused an undue hardship for middle-sized companies," one reader wrote anonymously.
The Free Enterprise Fund has filed a law suit against the constitutionality of the Public Company Accounting Oversight Board, which Sarbox created, alleging that it is unaccountable and unconstitutional.
He has proven success with start-ups, turnarounds, M&A, and growth business environments; he is a senior executive experienced with public environment GAAP and Sarbox compliance management.
That's why it's up to Cox to work within the SEC and with the Public Company Accounting Oversight Board to improve the regulations that guide Sarbox.