Tag Archive: Jeff Jenkins

Understanding SOX Requirements & The Sarbanes-Oxley Act

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The Sarbanes-Oxley Act of 2002 (SOX), named after Paul Sarbanes and Michael Oxley, is a law that implements regulations on publicly traded companies. In 2002, the US Congress passed the Sarbanes-Oxley Act (SOX) after a series of public scandals by large corporations such as Enron Corporation, Tyco International PLC, and WorldCom that led to a stock market plummet only a few months before the 2002 elections. The legislation intended to quell public fears of corporate misconduct and to require greater accountability by management and Boards of Directors when reporting financial data. However, Sarbanes-Oxley turned into a larger and more complex piece of legislation than originally planned. The Major Provisions of Sarbanes-Oxley The Sarbanes-Oxley Act of 2002 presented five main provisions. First, it created…