SOX – SARBANES-OXLEY ACT
What is Sarbanes-Oxley Act?
The SOX Act, or the Sarbanes-Oxley Act of 2002 is an act that requires much more stringent rules for accounting and management firms as well as public company boards. It regulates the accuracy of financial recordings.
This act came to be after numerous scandals that made the public lose confidence in the securities industries. The SOX act adds numerous provisions that can confirm whether or not a business’s financial activities are correct and un-tampered. Non-compliance with SOX act can result in hefty penalties.