| || || || || |
| About Sarbanes-Oxley Act |
| || |
| || || Background |
In the wake of corporate scandals at Enron, WorldCom and other public firms, Congress passed the Sarbanes-Oxley Act to crack down on securities fraud, boardroom scandals and tighten regulation of accounting rules.
Highlights of Sarbanes-Oxley
Creates Public Company Accounting Oversight Board.
Prohibits accounting firms from providing some consulting services to companies they audit.
Expands definition of obstruction of justice. Read Post Article Requires corporate managers to sign off on financial reports to attest that adequate controls are in place to detect mistakes and fraud. Read Post Article
Requires companies to create and disclose a code of ethics and to have a financial expert on the board of directors. Read Post Article Requires companies to provide more information to investors when reporting "pro forma" numbers, or figures that aren't in accordance with standards used for financial statements filed with the SEC. Read Post Article SEC: Tips for Investors on "Pro Forma" Financial Information
| || || || |