The U.S. faced several disheartening and frustrating scandals in the earliest part of the century. Without regulations guiding them to be transparent, corporations were regularly falsifying financial records or defrauding their investors. To curb this issue, Congress passed the Sarbanes-Oxley Act. This act, also known as SOX, codified a set of reporting and auditing standards into law to force corporations to provide truthful and accurate financial information and avoid further fraud issues.
Here we discuss some of the implications of SOX and how you can approach compliance for your publicly traded company.