The Sarbanes-Oxley Act (SOX) of 2002 is intended to ensure the reliability of publicly reported financial information and bolster confidence in U.S. capital markets. It establishes the Public Company Oversight Board to regulate public accounting firms that audit publicly traded companies. It prohibits such firms from providing other services to those companies along with the audit. It contains expansive duties and penalties for corporate boards, executives, directors, auditors, attorneys, and securities analysts.

For the past 70 years, U.S. securities laws have required regular reporting of results of a company's financial status and operations. SOX focuses on the accuracy of what's reported and the reliability of the information-gathering processes. After SOX, companies must implement internal controls and processes that ensure the accuracy of reported results.

The law requires that insiders may no longer trade their company's securities during pension fund blackout periods. It mandates various studies including a study of the involvement of investment banks and financial advisors in the scandals preceding the legislation. Also included are whistle blower protections, new federal criminal laws, including a ban on alteration of documents.

For more on Sarbanes-Oxley, including the full text of the ACT, please visit the Securities Exchange Commission web page on SOX.