SOX Compliance (Sarbanes-Oxley Act)

The Sarbanes-Oxley Act (SOX) is a U.S. law enacted in 2002 to enhance corporate governance and financial transparency. It was created in response to major accounting scandals that eroded public trust in financial markets. SOX requires publicly traded companies to establish strict internal controls over their financial reporting, ensuring accuracy and preventing fraud. Key provisions include mandatory financial audits and protection for whistleblowers who report misconduct. Overall, SOX aims to protect investors by improving the integrity and transparency of financial information provided by companies.