Sarbanes Oxley(SOX) and Credit Management
[ Senator Paul S. Sarbanes | Congressman Michael G. Oxley The Authors of Sarbanes Oxley Act ]
The Sarbanes-Oxley Act, enacted in July 2002, is a direct result of the large accounting scandals that had occurred over the last several years and shaken the very foundation of public accounting. Simply stated, Sarbanes-Oxley is a reform designed to institute stricter financial controls and reporting, and assure that financial reports are written in easily understandable language. Reports must be certified by the CEO, the CFO and signed off by independent auditors. As the full name, the Public Company Accounting Reform and Investor Protection Act implies, the Sarbanes-Oxley Act is designed to avoid the rampant irregularities and surprises that were discovered in 2001 and 2002, and to protect the public and investors.