SOX

The Sarbanes-Oxley Act of 2002 (SOX) is considered to be one of the most significant changes to federal securities laws in the United States. Sarbanes-Oxley followed a wave of well-publicized corporate financial scandals which included Enron, Arthur Andersen, and WorldCom. Congress passed the Sarbanes-Oxley Act in large part to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws. One of the most significant provisions within Sarbanes Oxley are the criminal and civil penalties that place executive management and the board of directors in the “hot seat”. Specifically, under Section 404 of the Sarbanes Oxley Act, executives need to certify and demonstrate that:

 

 

  Files containing accounting information have not been compromised, and

 

  All significant technical controls, including security authorizations and critical configuration files have not

  been compromised.

 

Read more at http://www.sarbanes-oxley.com