08.10.2018 Views

My Reading on ASQ CQA HB Part I-IA~IE-s

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>Part</strong> IC<br />

What is the 'Sarbanes-Oxley Act Of 2002 - SOX'<br />

The U.S. C<strong>on</strong>gress passed the Sarbanes-Oxley Act of 2002 <strong>on</strong> July 30, 2002 to protect investors from the<br />

possibility of fraudulent accounting activities by corporati<strong>on</strong>s. The SOX Act of 2002, also known as the<br />

Corporate Resp<strong>on</strong>sibility Act of 2002, mandated strict reforms to improve financial disclosures from<br />

corporati<strong>on</strong>s and prevent accounting fraud.<br />

The Act was in resp<strong>on</strong>se to accounting malpractice in the early 2000s when public scandals such as Enr<strong>on</strong><br />

Corporati<strong>on</strong>, Tyco Internati<strong>on</strong>al plc and WorldCom shook investor c<strong>on</strong>fidence in financial statements and<br />

demanded an overhaul of regulatory standards.<br />

L<strong>on</strong>g title: An Act To protect investors by improving the accuracy and reliability of corporate disclosures made<br />

pursuant to the securities laws, and for other purposes.<br />

Read more: Sarbanes-Oxley Act Of 2002 (SOX)<br />

https://www.investopedia.com/terms/s/sarbanesoxleyact.asp#ixzz5QsrIqK4l<br />

Follow us: Investopedia <strong>on</strong> Facebook<br />

Charlie Ch<strong>on</strong>g/ Fi<strong>on</strong> Zhang

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!