Sarbanes-Oxley (SOX) and Corporate Governance Overview
What is the Sarbanes Oxley Act?
US law passed 2002 to strengthen Corporate governance and restore investor confidence.
Sponsored by US Senator Paul Sarbanes and US Representative Michael Oxley.
Passed in response to a number of major corporate and accounting scandals involving prominent companies in the United States.
11 sections ranging from additional Corporate Board responsibilities to criminal penalties.
What does Sarbanes Oxley Address?
Sarbanes Oxley Act Establishes new standards for Corporate Boards and Audit Committees
Sarbanes Oxley Act Establishes new accountability standards and criminal penalties for Corporate Management
Sarbanes Oxley Act Establishes new independence standards for External Auditors
Sarbanes Oxley Act Establishes a Public Company Accounting Oversight Board (PCAOB) under the Security and Exchange Commission (SEC) to oversee public accounting firms and issue accounting standards
