What is the future of SOX? Will the Sarbanes-Oxley Act keep developing more in the future?.
What is the future of SOX? Will the Sarbanes-Oxley Act keep developing more in the future?
What is the future of SOX? Will the Sarbanes-Oxley Act keep developing more in the future?
The Sarbanes-Oxley Act at 15: what has changed?
On the 15th anniversary of the Sarbanes-Oxley Act, we reflected on the positive change in the accuracy of financial reporting and quality of auditing in the US since its enactment.
n 30 July 2002, in the wake of a series of financial reporting scandals on a scale that rocked the financial markets, the Sarbanes-Oxley Act (SOX or the Act) was signed into law — following passage by an overwhelming majority in the US Senate and House of Representatives — in an effort to restore public confidence in the reliability of financial reporting.
The law set out to accomplish this daunting goal by establishing a new accountability framework for financial reporting. Perhaps the most dramatic change brought about by the law was with respect to the audit profession: by calling for the establishment of the Public Company Accounting Oversight Board (PCAOB or Board), Congress brought an end to self-regulation of the audit profession.
Principal components of the Sarbanes-Oxley Act of 2002
Four major changes that SOX put into effect.
1. Established independent oversight of public company audits, funded via fees paid by public companies and SEC-registered broker-dealers
- Firstly, established the PCAOB, an independent regulator of auditors of public companies and broker-dealers
- Secondly, provided the PCAOB with inspection, enforcement and standard-setting authority
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What is the future of SOX? Will the Sarbanes-Oxley Act keep developing more in the future?