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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Sarbanes-Oxley Act

see CORPORATE GOVERNANCE.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

Sarbanes-Oxley Act

see CORPORATE GOVERNANCE.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
"Automating key controls likely represents the 'final frontier' in terms of significant Sarbanes-Oxley process improvement and cost savings," said Jim DeLoach, Protiviti's senior SOX practice leader.
As noted above, the 110th Congress will hold hearings on Sarbanes-Oxley, and several bills have been introduced to make section 404 of the act less costly.
"Nancy Pelosi, Chuck Schumer, John Kerry, and, ironically, incoming New York Governor Eliot Spitzer said throughout the election season that Sarbanes-Oxley is too burdensome," said Berlau.
Sarbanes-Oxley may be seen as a silver lining in the AHERF bankruptcy because the unraveling of AHERF was partly responsible for the passage of the legislation.
Public sources are increasingly requiring operational and financial transparency a la Sarbanes-Oxley. Further, systems of accountability and control reduce overall firm risk, and provide leverage in negotiating with lenders and investors to drive down the cost of capital.
The Sarbanes-Oxley Act has forced companies to examine the role spreadsheets play in their financial reporting processes as well as financial decisions, such as forecasting, that are based on the use of spreadsheets.
He finally left the business in April 2005, partly out of frustration with the way Sarbanes-Oxley and its enforcement changed the nature of his work.
The report, "Leading Strategies: Streamlining Sarbanes-Oxley Compliance for Retail & Consumer Companies," presents strategies to help companies create sustainable efforts to meet the requirements of the law.
Trends indicate that there is greater pressure for European companies to improve their own codes of ethics to comply with Sarbanes-Oxley or equivalent pan-regional or national codes, according to Muel Kaptein, a professor of business ethics and integrity management at the Rotterdam School of Management Erasmus University in the Netherlands.
DeLay and other GOP congressional leaders, for purposes of partisan political advantage, decided to act "on the premise that 'business is theft,'" recalls former Treasury Department official Paul Craig Roberts, by enacting--with DeLay's enthusiastic support--the Sarbanes-Oxley Act of 2002.
"Even if your company is not legally required to comply with Sarbanes-Oxley, your customers, shareholders and communities are looking for compliance to elevate their transparency and visibility."