What is the Sarbanes-Oxley Act of 2002, entrails
The Sarbanes-Oxley Act of 2002 is a federal law passed in response to a series of corporate accounting scandals that occurred in the early 2000s, most notably the collapse of Enron and WorldCom. The act was designed to improve corporate governance, strengthen financial reporting, and increase transparency in financial transactions.
The Sarbanes-Oxley Act established stricter regulations for public companies, including requirements for independent audits, greater accountability for corporate executives, and increased disclosure of financial information. It also created the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing profession and investigate potential accounting irregularities.
Overall, the Sarbanes-Oxley Act was intended to restore investor confidence in the financial markets and prevent future corporate scandals. While the act has been criticized for its regulatory burden on businesses, it is generally seen as a necessary step to protect investors and ensure the integrity of financial reporting.