What Does SOX Stand For?

SOX stands for Sarbanes Oxley

SOX, or Sarbanes-Oxley Act, is a United States federal law enacted in 2002 to enhance corporate governance and accountability. It was established in response to major financial scandals, aiming to protect investors by improving the accuracy and reliability of corporate disclosures. The act mandates stringent reforms in financial reporting, internal controls, and ethical standards for publicly traded companies, along with severe penalties for fraudulent activities. Key provisions include the establishment of the Public Company Accounting Oversight Board (PCAOB) and requirements for CEO and CFO certification of financial statements.