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Sarbanes-Oxley Act of 2002

In response to major corporate accounting scandals at large U.S. companies such as Adelphia, Computer Associates, Enron, and WorldCom, to name a few, the United States Congress passed a sweeping legislation in July 2002 aimed at improving the integrity of financial statements and related audits and mandating certain corporate governance practices within publicly traded U.S. companies. This legislation, called the SarbanesOxley Act of 2002 (referred to here as Sarbanes-Oxley or the Act), has been considered by many to be the most significant new law since the passage of the Securities and Exchange Acts of 1933 and 1934.

The Act is most commonly referred to by its section numbers. Each section has specific requirements, affecting either the external auditor or a company or both, or in some ...

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