The Sarbanes-Oxley Act
A PowerPoint Presentation
Published August 14, 2007
The Sarbanes-Oxley of 2002 was the culmination of a stormy period in the financial world, which included instances of unethical behavior and fraud at major companies, a slump in the economy, business and audit failures and the pressures for reform that often occur during an election year.
The act created the Public Company Accounting Oversight Board. This five-member board will:
1. Register auditors of public companies.
2. Inspect and discipline auditors.
3. Enforce compliance with the SEC.
4. Establish standards relating to audits.
The act also revised corporate governance standards, added new disclosure requirements for companies, established that some frauds will be considered federal crimes and raised the criminal penalties for violating the securities laws.
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