The Sarbanes-Oxley Act


As the investors worldwide were recuperating from busted tech-bubble of 2000, a series of corporate misgovernance, fraudulent accounting practices and auditing abnormalities surfaced from corporations like Enron and WorldCom. In response of these corporate financial scandals, US Congress passed a legislation known as "The Sarbanes-Oxley Act" or "SOX" (by July 30, 2002) which brought in new set of regulations and responsibilities for all boards of US public companies, their executive management members and associated public auditing & accounting firms, ordering Securities and Exchange Commission (SEC) to administer the entire compliance process.

Elements of The SOX Act