SOX
Sarbanes-Oxley Act
Definition
US federal legislation enacted in 2002 to protect investors from fraudulent financial reporting by corporations. SOX established requirements for internal controls over financial reporting (Section 404), CEO/CFO certification of financial statements (Section 302), whistleblower protections, and enhanced audit committee responsibilities.
Regulatory Context
Enacted following the Enron and WorldCom scandals, SOX applies to all US-listed companies and their subsidiaries. Section 404 compliance remains one of the most significant regulatory burdens for public companies, requiring annual attestation of internal controls.