SOX

SOX, or the Sarbanes-Oxley Act, is a U.S. law enacted in 2002 in response to major corporate scandals, like Enron and WorldCom. Its primary purpose is to protect investors by improving the accuracy and reliability of corporate disclosures. SOX establishes strict guidelines for accounting practices, requiring companies to implement internal controls and undergo regular audits. It holds executives accountable for financial statements, ensuring they are truthful and transparent. This law aims to restore public confidence in the financial markets by enhancing corporate governance and financial reporting standards.