Legal Terms - Sarbanes Oxley Act Compliance
Sarbanes Oxley Act Compliance information: The Sarbanes Oxley Act of 2002, sometimes referred to as SOX, was a legislative response to the accounting scandal caused by the recent fall of some publicly held companies and the perceived excesses of the management of some other companies. Sarbanes-Oxley requires compliance with a comprehensive reform of accounting procedures for publicly held corporations to promote and improve the quality and transparency of financial reporting by both internal and external independent auditors. The Public Company Accounting Oversight Board, or PCAOB, has charge through the Securities and Exchange Commission. Several concerns have devised special software products to address the new rules.