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 towardsthe 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.