Sarbanes-Oxley Act of 2002

  1. passed in response to several massive corporate fraud scandals. The thrust of the Act was to prevent fraudulent corporate accounting practices. The Act increased the requirements for financial disclosure by corporations. Accounting firms that audit public corporations were also put under increased scrutiny, and the Public Company Oversight Board was established under the Act to regulate such accounting firms. The Act included a number of provisions designed to increase corporate responsibility, and added new protections for whistleblowers.