SOX Compliance

SOX Compliance refers to regulations set by the Sarbanes-Oxley Act, enacted in 2002 in response to corporate scandals. It aims to protect investors by improving the accuracy and reliability of corporate financial disclosures. Companies are required to implement strict internal controls over financial reporting, ensuring their financial statements are truthful. Executives must certify the accuracy of these reports personally. Non-compliance can result in severe penalties, including fines and imprisonment. In essence, SOX Compliance promotes transparency and accountability in business practices, helping to restore public trust in financial markets.