SARBANESOXLEY ACT
Sarbanes-Oxley Act: translation
The Sarbanes-Oxley Act of 2002, was signed into law by U.S. President George W. Bush and became effective on July 30, 2002. The Act contains sweeping reforms for issuers of publicly traded securities, auditors, corporate board members, and lawyers. It adopts tough new provisions intended to deter and punish corporate and accounting fraud and corruption, threatening severe penalties for wrongdoers, and protecting the interests of workers and shareholders. Exchange Handbook Glossary
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Sarbanes-Oxley Act Sar‧banes-Ox‧ley Act [ˌsɑːbeɪnz ˈɒksli ˌækt ǁ ˌsɑːrbeɪnz ˈɑːks-] noun
LAW ACCOUNTING a US law that controls the way all US public companies keep and check their financial accounts. Under the law, companies must send a yearly report to the Securities and Exchange Commission showing that the financial accounts are correct and true in every detail. The law was introduced in 2002 after a financial Scandal involving several large US companies, in particular Enron. It is often informally called SOX
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US legislation which created a federal accounting supervision board and introduced criminal liability for executives who knowingly file false financial reports.