BROWSE

Sarbanes-Oxley Act Of 2002 (SOX)

What is the 'Sarbanes-Oxley Act Of 2002 - SOX'

The Sarbanes-Oxley Act of 2002 (SOX) is an act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The SOX Act mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud. The SOX Act was created in response to accounting malpractice in the early 2000s, when public scandals such as Enron Corporation, Tyco International plc, and WorldCom shook investor confidence in financial statements and demanded an overhaul of regulatory standards.

Explaining 'Sarbanes-Oxley Act Of 2002 - SOX'

The rules and enforcement policies outlined by the SOX Act amend or supplement existing legislation dealing with security regulations. The two key provisions of the Sarbanes-Oxley Act are Section 302 and Section 404.

An Example of SOX Implementation

Many companies have been created to help other organizations comply with the SOX Act. Workiva Inc., for example, is one such company, providing a cloud-based productivity platform that links data and builds internal controls across global enterprises. On June 7th, 2016, Integrated DNA Technologies, Inc. announced that it was using Workiva's Wdesk platform to help it comply with the SOX Act.


Further Reading


Did conservatism in financial reporting increase after the Sarbanes‐Oxley Act? Initial evidence
meridian.allenpress.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

The Sarbanes‐Oxley Act of 2002 and market liquidityThe Sarbanes‐Oxley Act of 2002 and market liquidity
onlinelibrary.wiley.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Changes in discretionary financial reporting behavior following the Sarbanes-Oxley ActChanges in discretionary financial reporting behavior following the Sarbanes-Oxley Act
journals.sagepub.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Market reaction to events surrounding the Sarbanes-Oxley Act of 2002 and earnings managementMarket reaction to events surrounding the Sarbanes-Oxley Act of 2002 and earnings management
www.journals.uchicago.edu [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Economic consequences of the Sarbanes–Oxley Act of 2002Economic consequences of the Sarbanes–Oxley Act of 2002
www.sciencedirect.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Earnings restatements, the Sarbanes-Oxley Act, and the disciplining of chief financial officersEarnings restatements, the Sarbanes-Oxley Act, and the disciplining of chief financial officers
journals.sagepub.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Was the Sarbanes–Oxley Act of 2002 really this costly? A discussion of evidence from event returns and going-private decisionsWas the Sarbanes–Oxley Act of 2002 really this costly? A discussion of evidence from event returns and going-private decisions
www.sciencedirect.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

The Sarbanes–Oxley Act and firms' going-private decisionsThe Sarbanes–Oxley Act and firms' going-private decisions
www.sciencedirect.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

The Sarbanes Oxley Act of 2002: Implications for compensation contracts and managerial risk-takingThe Sarbanes Oxley Act of 2002: Implications for compensation contracts and managerial risk-taking
papers.ssrn.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …

Going-private decisions and the Sarbanes-Oxley Act of 2002: A cross-country analysisGoing-private decisions and the Sarbanes-Oxley Act of 2002: A cross-country analysis
academic.oup.com [PDF]
… and WorldCom served as a catalyst for the passage of the Sarbanes-Oxley Act of 2002 … Watts (2003b) also argues that litigation under the Securities Acts encourages conservatism because litigation is … We describe the sample selection and the research design in the third section …


Leave a Reply

Your email address will not be published. Required fields are marked *