Sarbanes-Oxley Act

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Sarbanes-Oxley Act

Administered by the Securities and Exchange Commission (SEC) starting in 2002, the Sarbanes-Oxley Act (SOX) regulates corporate financial records and provides penalties for their abuse. It defines the type of records that must be recorded and for how long. It also deals with falsification of data. Affecting data storage capacities and planning, Sarbanes-Oxley was enacted after the Enron and WorldCom scandals of the early 2000s. The bill was sponsored by Paul Sarbanes, Democratic Senator from Maryland and additionally authored before passage by Michael Oxley, Republican Senator from Ohio. See risk mitigation.
References in periodicals archive ?
Many individuals in the media industry have reported The Sarbanes-Oxley Act of 2002 as "the most sweeping corporate reform legislation since the 1930's." Signed into law on July 30, 2002, it will significantly change the way that many public corporations operate.
In its November 2003 report, Public Accounting Firms: Required Study on the Potential Effects of Mandatory Audit Firm Rotation (GAO-04-216), GAO reported that, considering the costs and benefits of mandatory audit firm rotation and the recent reforms being implemented as a result of the Sarbanes-Oxley Act of 2002, several years' experience will be needed to evaluate the effects of the act.
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.
The Sarbanes-Oxley Act of 2002 is far-reaching legislation that will affect all public companies.
"Sarbanes-Oxley Act of 2002: Law and Explanation" is a book that includes full--text of the new law with explanations of the law's provisions, committee reports and legislative history.
Thanks to the Sarbanes-Oxley act of 2002, boards of directors are charged with an increased amount of responsibility for oversight of corporate functions.
102(d) of the Sarbanes-Oxley Act of 2002 provides that each registered public accounting firm shall submit an annual report to the Board, and also may be required to report more frequently, to provide information specified by the Board.
The internal controls requirements of the Sarbanes-Oxley Act of 2002, combined with the Financial Accounting Standards Board's (FASB's) new guidance in respect of the accounting for income taxes, fundamentally alter the environment for public company tax and accounting functions.
The Sarbanes-Oxley Act of 2002. The act created the Public Company Accounting Oversight Board to oversee auditors of public companies and set public company auditing standards, among other steps.
PeriseopeIQ, a provider of Web-based assessment solutions, has announced the availability of DISCLOSURE, a risk assessment and management solution designed to meet the compliance requirements of Section 302 of the Sarbanes-Oxley Act of 2002. Based on a secure Web portal, DISCLOSURE enables companies to know what is affecting their financial results in a range of areas, from legal matters and policy violations to off-balance sheet transactions and Securities and Exchange Commission updates.
As publicly traded insurance companies comply with the corporate governance mandates of the Sarbanes-Oxley Act of 2002, lessons learned along the way might benefit mutual insurers, should they be required at some point to comply.