The Sarbanes-Oxley (SOX) Act is a U.S. law passed by Congress in 2002. It’s designed to combat the potential for fraudulent accounting practices by corporations and to protect investors. It’s also known as the Corporate Responsibility Act of 2002. SOX was created in response to the accounting malpractice and the subsequent fallout from public accounting scandals including Enron, Tyco, and WorldCom. The changes required by SOX include the requirement that senior management certifies the accuracy of financial statements, and that management and auditors establish internal controls and reporting methods to measure the adequacy of those controls.

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