Sarbanes Oxley Act 2002

Sado | 21:13 Wed 31st Aug 2005 | Business & Finance

3 Answers

Does anyone know what the Sarbanes Oxley Act 2002 is? I saw it mentioned on a website, and couldn't find any explanation of it. I think it is something to do with the business world.

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zmudge

Simply put, the Sarbanes-Oxley Act requires the Chief Executive Officer and Chief Financial Officer of public companies to attest at their personal risk of huge fines and prison sentences that their company�s financial statements contain no material mistake(s), the correction of which would result in a restatement of earnings.

Miss Zippy

Sarbanes Oxley is the colloquial name given to a piece of US legislation called the Public Company Accounting Reform and Investor Protection Act 2002. Sarbanes and Oxley are the two US senators who initiated the legislation. Its purpose is to put in place new and enhanced corporate governance procedures to avoid further scandals such as Enron. Although it's a US act, it applies to any company in any jurisdiction that is listed on Nasdaq or NYSE.

Sado

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Many thanks, Zmudge and Miss Zippy. Why didn't I know that?

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