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Process flow diagram Programs Programs Project control systems Project control systems Project Management Project Management Sarbanes-Oxley Sarbanes-Oxley SOX Sarbanes Oxley PM Compliance News SOX and information technology SOX and information technology SOX Section 302: Internal control certifications SOX Section 302: Internal control certifications SOX Section 404: Assessment of internal control SOX Section 404: Assessment of internal control SOX Section 802 Criminal Penalties SOX Section 802 Criminal Penalties Sarbanes-Oxley The Sarbanes-Oxley Act of 2002 can be known as the Public Company Accounting Reform and Investor Protection Act of 2002. Sarbanes-Oxley Act is commonly called SOX or Sarbox. SOX is a United States federal law enacted in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of the affected companies collapsed, shook public confidence in the nation's securities markets. Sarbanes-Oxley is named after sponsors Senator Paul Sarbanes and Representative Michael G. Oxley. Auditor conflicts of interest: Prior to SOX, auditing firms, the primary financial "watchdogs" for investors, also performed significant non-audit or consulting work for the companies they audited. Many of these consulting agreements were far more lucrative than the auditing engagement. This presented at least the appearance of a conflict of interest. For example, challenging the company's accounting approach might damage a client relationship, conceivably placing a significant consulting arrangement at risk, damaging the auditing firm's bottom line. Sarbanes-Oxley 1) Public Company Accounting Oversight Board (PCAOB) Hawaii Sarbanes Oxley Hawaii
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