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What is Sarbanes-Oxley?

The Sarbanes Oxley-Act is a set of complex regulations that is considered to be one of the most important business reform acts since 1934.  The Act combines bills that were drafted by Senator Paul Sarbanes and Congressman Michael Oxley designed to enforce corporate accountability and responsibility.  Congress quickly enacted the bill to restore confidence in corporate America, where a plunging stock market, increased corporate fraud and numerous accounting scandals, not to mention record breaking bankruptcies, have had a negative impact on the economy.  The Act has granted the SEC increased regulatory control, lengthened the statute of limitations and imposed greater criminal and compensatory punishment on executives and companies that do not comply.

The Act is made up of 11 Titles with corresponding Sections each covering a specific area of reform.  The next article explains the impacts of these Sections on your business.

Continue to How It Affects Your Business


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