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Sarbanes Oxley Act Of 2002

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Sarbanes Oxley Act Of 2002
The Sarbanes-Oxley Act of 2002 is mandatory. All large and small organizations must comply with this act. The legislation came into existence in 2002 as a result of a number of corporate and accounting scandals and introduced major changes to the regulation of financial practice and corporate governance. The main architects of the acts were Senator Paul Sarbanes and Representative Michael Oxley. The SOX act protects the shareholders from forged representations in corporate financial statements. The financial information on which the investors rely should be truthful and its accuracy must be verified by an independent third party.

Some of the key provisions in the SOX act are, the corporate management review the financial statements and certify
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