Sarbanes – Oxley Act, 2002

Created due to corporate scandals
In its reaction to corporate financial scandals including Enron, Arthur Andersen and many other companies, Congress passed the Sarbanes-Oxley Act of 2002.

Purpose
Sarbanes Oxley is designed to "protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws."

In brief
SOX provides for the following :
- Higher levels of auditor independence
- Personal accountability for CEOs and CFOs
- Increased criminal and civil penalties for securities violations
- Increased disclosure regarding executive compensation
- Stricter provisions on Insider trading
- Certification of Internal audit work by External Auditors.

Impact on all publicly traded companies
Every publicly traded company in the U.S. has to comply with SOX irrespective of their size. All the International companies listed in U.S. also have to comply with SOX.

International environment......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Sox - Brief Overview
Approximate Word Count: 511
Approximate Pages: 3 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Sox - Brief Overview, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!