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The Sarbanes-Oxley Act of 2002 is also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and is commonly called SOX or Sarbox. It is named after sponsors Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH).
The S.O. Act was passed as a direct result of a series of major corporate financial accounting scandals. This legislation directly impacts accountants and attorneys, officers and owners of publicly traded companies, as well as brokers, dealers, investment bankers, and financial analysts. The Act, PL 107-204, established the Public Company Accounting Oversight Board (PCAOB), responsible for registering, monitoring, investigating, and disciplining the activities of public accounting firms, including establishing the guidelines for the conduct of several key auditing procedures and delineating the types of services that CPAs are prohibited from providing to audit clients.
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