11 Facts About Sarbanes-Oxley Act

Sarbanes–Oxley Sarbanes-Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations.

In 2002, Sarbanes-Oxley was named after bill sponsors U S Senator Paul Sarbanes and U S Representative Michael G Oxley .

Sarbanes-Oxley Act contains eleven titles, or sections, ranging from additional corporate board responsibilities to criminal penalties, and requires the Securities and Exchange Commission to implement rulings on requirements to comply with the law.

Sarbanes-Oxley Act was approved in the House by a vote of 423 in favor, 3 opposed, and 8 abstaining and in the Senate with a vote of 99 in favor and 1 abstaining.

The screening of smaller firms with weaker governance attributes from U S exchanges is consistent with the heightened governance costs imposed by the Act increasing the bonding-related benefits of a U S listing.

Related searches

Sarbanes-Oxley Act required the disclosure of all material off-balance sheet items.

Under Section 404 of the Sarbanes-Oxley Act, management is required to produce an "internal control report" as part of each annual Exchange Sarbanes-Oxley Act report.

Section 806 of the Sarbanes–Oxley Sarbanes-Oxley Act, known as the whistleblower-protection provision, prohibits any "officer, employee, contractor, subcontractor, or agent" of a publicly traded company from retaliating against "an employee" for disclosing reasonably perceived potential or actual violations of the six enumerated categories of protected conduct in Section 806 .

Claim under the anti-retaliation provision of the Sarbanes–Oxley Act must be filed initially at the Occupational Safety and Health Administration at the U S Department of Labor.

On that score it's getting harder for backers of the Sarbanes-Oxley accounting law to explain away each disappointing year since its 2002 enactment as some kind of temporary or unrelated setback.

Sarbanes–Oxley Sarbanes-Oxley Act has been praised for nurturing an ethical culture as it forces top management to be transparent and employees to be responsible for their acts whilst protecting whistleblowers.