SOX (Sarbanes-Oxley Act)

The Sarbanes-Oxley Act (SOX) is a law enacted in 2002 to improve the accuracy and reliability of corporate financial reporting. It was created in response to major financial scandals to protect investors and restore trust. SOX requires companies, especially publicly traded ones, to establish strong internal controls, accurate record-keeping, and transparency in their financial disclosures. It also holds company executives accountable for the accuracy of financial statements, with stricter penalties for fraud. Overall, SOX aims to prevent financial misconduct and ensure that shareholders and the public can trust the financial information companies provide.