Learning about Sarbanes-Oxley
The Sarbanes-Oxley Act is a federal statute that establishes laws that protect auditing and financial activities in public companies and holds corporate officers, accountants, and auditors accountable for accounting and other auditing activities in a company. The law seeks to protect employees, shareholders, and the public from dubious accounting activities and accounting errors that may be intentional or otherwise. These sets of laws are enforced by the Securities and Exchange Commission (SEC) in the United States. These regulations target the following areas:
- Regulation of accounting activities.
- Increasing penalties and other forms of punishments for people in violation of the regulations.
- Offering additional protection that was non-existent in previous laws, such as the Securities and Exchange Act of 1934.
- Ensuring corporate responsibility. Without regulations, shareholders, employees, and the public would remain at the mercy of...
