Glossary
Sarbanes-Oxley Act (SOX)
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The Sarbanes-Oxley Act (SOX) is a U.S. law enacted in 2002 to improve corporate financial reporting and prevent fraud. It cracked down on accounting scandals by setting stricter rules for publicly traded companies. SOX requires stricter internal controls, CEO and CFO accountability for financial statements, and independent oversight of audits. It aims to ensure investors have greater trust in the accuracy of a company’s financial health.