All you need to know about Sarbanes-Oxley (SOX)

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The Sarbanes-Oxley Act of 2002 commonly called SOX is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Peregrine Systems and WorldCom.

These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes and Representative Michael G. Oxley, the Act was approved by the House and by the Senate.1324_numbers_colour

The legislation is wide ranging and establishes new or enhanced standards for all U.S. public listed companies and public accounting firms.

The Act contains sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law.

Some believe the legislation was necessary and useful, others believe it does more economic damage than it prevents, and yet others observe how essentially modest the Act is compared to the heavy rhetoric accompanying it.

Tom Sorensen

Tom Sorensen is an executive search veteran with over 25 years of experience recruiting in Asia, Europe, and Africa. He has worked in executive search in Thailand since 2003 and is recognized as one of the country’s top recruiters and most profiled headhunters.