A 2002 U.S. federal law which establishes a broad array of standards for public companies, their management boards, and accounting firms. It was passed after a series of accounting scandals at Enron, WorldCom and Tyco International diminished public trust in U.S. corporations, and is designed to increase corporate accountability. The law established the Public Company Accounting Oversight Board (PCAOB), which oversees the auditors of public companies. Sarbanes-Oxley sets forth eleven specific reporting requirements that companies and executive boards must follow, and requires the Securities and Exchange Commission (SEC) to oversee compliance. also called SOX, Sarbox Sabanes-Oxley, Public Company Accounting Reform and Investor Protection Act of 2002.
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