Sarbanes-Oxley Act (SOX)

The Sarbanes-Oxley Act (SOX) is a U.S. law enacted in 2002 in response to major corporate scandals, like Enron and WorldCom. Its goal is to enhance corporate governance and accountability. SOX requires public companies to improve their financial reporting and internal controls, ensuring greater transparency and accuracy in financial statements. It also protects whistleblowers and mandates that company executives personally certify the accuracy of financial reports. This law aims to restore investor confidence by preventing fraudulent financial practices and ensuring the integrity of the financial markets.