What is Sarbanes-Oxley Act (SOX)?

What does SOX stand for?

The Sarbanes-Oxley Act (additionally abbreviated SOX), is a US Federal regulation enacted on July 30, 2002 that set a huge Range of recent standards for Public agencies, forums and Accounting companies. It establishes a Public Company Accounting Oversight Board (PCAOB) to oversee the auditors of public corporations. The Sarbanes-Oxley Act does no longer practice to Privately held groups.

The Act additionally is going by means of the titles: Public Company Accounting ReForm and Investor Protection Act with the aid of the US Senate; Corporate and Auditing Accountability and Responsibility Act through the UNited States House of Representatives; and is also usually referred to as Sarbanes–Oxley or Sarbox.

What Does Sarbanes-Oxley Act Mean?

Sarbanes-Oxley become/is an attempt to assist save you such accounting scandals inside the aftermath of these occurring at Enron, WorldCom, ADelphia, Peregrine SySTEMs and Tyco International. These scandals diminished trust in US Businesses and fee traders billions of dollars whilst percentage expenses collapsed and the nation’s safety markets had been sigNiFicantly shaken.

While that is a prison/business concept, it is vital to an IT expert because of the huge quantity of labor spent with the aid of big organizations in complying with the regulation. Years following the Act had been exCellent for specialists with the abilties to assist huge companies with the transition.