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What is Sarbanes Oxley Act Of 2002?

Definition of Sarbanes Oxley Act Of 2002

Legislation passed largely as a result of a number of accounting scandals. Among the many features is the creation of the Public Company Accounting Oversight Board. This board is charged to:The Board shall:1) register public accounting firms;2) establish, or adopt, by rule, auditing, quality control, ethics, independence, and otherstandards relating to the preparation of audit reports for issuers;(3) conduct inspections of accounting firms;(4) conduct investigations and disciplinary proceedings, and impose appropriatesanctions; (5) perform such other duties or functions as necessary or appropriate;(6) enforce compliance with the Act, the rules of the Board, professional standards, andthe securities laws relating to the preparation and issuance of audit reports and theobligations and liabilities of accountants with respect thereto;(7) set the budget and manage the operations of the Board and the staff of the Board.

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