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Sarbanes-Oxley Act


Signed into law on July 30, 2002, by President Bush, the act oversees the financial reporting of public corporations. Through the creation of the Public Company Accounting Oversight Board, it is intended to ensure accuracy and reliability of financial disclosures to investors. One of its most-often-cited provisions is a requirement that chief executives sign off on financial statements, attesting to their accuracy. The law was enacted in the wake of several high-profile corporate accounting scandals, including the 2001 bankruptcy of Enron Corp. The law, sometimes referred to by the shortened form "Sarbox," is named after its sponsors, Sen. Paul Sarbanes (D-Md.) and Rep. Michael G. Oxley (R-Ohio).

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