Sarbanes-Oxley Act


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Related to Sarbanes-Oxley Act: Enron

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 ?
He urges regulators to strictly enforce the new rules set by the Sarbanes-Oxley act. Similarly, Guerra ( 2004) argues that the Sarbanes-Oxley act is the response to minimize the conflict of interests in the process of issuing and marketing securities.
The next section examines the specific requirements of the Sarbanes-Oxley Act that are applicable to foreign accounting firms followed by a discussion of the impact that these new requirements impose on foreign accounting firms and the current state of development of a global co-operative system of accounting/auditing oversight.
The Sarbanes-Oxley Act requires the chief executive officer (CEO) and chief financial officer (CFO) of each company to prepare a statement to accompany the company's annual audit report that certifies the appropriateness of the financial statements and disclosures contained in the periodic report, and that those financial statements and disclosures fairly present, in all material respects, the operations and financial condition of the issuer.
The Sarbanes-Oxley Act of 2002 goes into great detail concerning auditors and a commission to oversee them.
The Sarbanes-Oxley Act of 2002 imposes tough new rules on the accounting industry, especially on auditor independence, in the wake of the Enron scandal.
Mr Devlin's first key battle is likely to be over the United States' recent Sarbanes-Oxley Act, which seeks to regulate all firms listed in the US, including those based in Europe.
The far-reaching Sarbanes-Oxley Act of 2002, which established broad new financial reporting requirements for public companies and reestablished the value of auditing and attestation, has created strong demand for public accountants.
The PCAOB is looking for tips on potential violations by a registered public accounting firm (or associated persons) of the Sarbanes-Oxley Act, PCAOB rules or other applicable law.
The implementation of systems to comply with the Sarbanes-Oxley Act of 2002 is a perfect example: A large amount of new data will be generated to comply, but this data may only be needed in the case of an audit.
IS EVERYONE HAVING FUN with Section 404 of the Sarbanes-Oxley Act? This is one of the last provisions of Sarbox to be phased in this year.
Companies looking for a mechanism for employees to remain anonymous when reporting concerns about accounting or auditing irregularities--a requirement under Sarbanes-Oxley Act of 2002--can contract with an "ethics hotline" to provide the service.