Sarbanes Oxley Glossary

The Sarbanes-Oxley Act is a piece of legislation that combines Bills written by Senators Paul Sarbanes (D-MD) and Michael G. Oxley (R-OH) that addressed corporate auditing accountability and reporting practices. Simply put, it comprises regulations intended to control financial abuses at large public companies. The law now requires that companies boost their accounting oversight and adopt strict internal controls.

The Sarbanes-Oxley Act (SOX) has had deep effects in business since it became law on July 30, 2002. Management of most public companies had a time and dollar-consuming road to compliance with the SarbOx rules. SOX focuses on financial and accounting issues but effects other functional areas such as supply chain, human resources and Information Technology (IT). FierceSarbox is rare in its weekly news coverage of the wide range of issues in Sarbanes-Oxley compliance.

The Sarbanes-Oxley Act’s far-reaching implications for business require a variety of employees to be trained on SOX compliance. SOX training as an overview of the legislation is appropriate for CEOs, CFO, management and crucial employees. Sabanes-Oxley training courses should cover internal controls (section 404), internal auditing, documentation and division of labor solutions. A SOX workshop or seminar might also address consulting companies and choosing an auditing firm.

The Public Company Accounting Oversight Board (PCAOB) states their mission on their website: “To oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.