What is the Sarbanes-Oxley Act?

The Sarbanes-Oxley Act, also known as the "Public Company Accounting Reform and Investor Protection Act," is a United States federal law passed in 2002 in response to the "Enron scandal" and other financial frauds. It is meant to ensure corporate accountability and transparency by creating high standards for financial and accounting practices. The Act sets requirements for public companies, including establishing procedures for internal controls, setting up audit committees, having an outside auditing firm review financial reports, and creating an independent board of directors. It also imposes certain restrictions on corporate officers, such as requiring them to certify financial statements and banning the personal trading of company stocks. The Sarbanes-Oxley Act applies to public companies in all states, including New Hampshire. It was enacted to restore public trust in the stock markets and improve the accuracy of financial reporting. It helps ensure that companies provide reliable and accurate financial reports to investors, which helps guard against corporate fraud and misconduct.

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What is the Sarbanes-Oxley Act?

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