The Sarbanes-Oxley Act

Sarbanes-Oxley Act of 2002 usually shortened to SOX has been legislation passed

through United States Congress to safeguard shareholders along with general public from

accounting errors as well as fraudulent practices within enterprise and also improve accuracy of

the corporate disclosures. United States Securities and Exchange Commission administers act

that sets deadlines for the compliance along with publishes rules on needs.

Sarbanes-Oxley Act had been enacted in response towards the series of the higher profile

financial scandals, which happened in initial 2000s at organizations involving Enron, WorldCom

and also Tyco, which rattled the investor confidence. The act, drafted through United States

Congressmen Paul Sarbanes along with Michael Oxley had been focused at improving the

corporate governance along with accountability. At present, all the public organizations should

comply with the SOX.