The Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 (SOX) is the public company accounting reform and investor protection act that was passed in response to high-profile business failures, such as Enron and WorldCom.

The Act, which applies in general to publicly held companies and their audit firms, dramatically affects the accounting profession and impacts not just the largest accounting firms, but any CPA actively working as an auditor of, or for, a publicly traded company. The Act makes sweeping changes to the CPA profession—its standard setting, disciplinary model, and scope of services—just to name a few.

CAQ supports SOX Section 404
The Center for Audit Quality (CAQ) expressed support for Section 404(b) of the Sarbanes-Oxley Act of 2002 (SOX), in a letter to leaders of the House Financial Services Committee.

House Committee approves SOX exemption for small firms
The House Financial Services Committee approved an amendment that would permanently exempt small public companies with a public float below $75 million from complying with Section 404(b) of Sarbanes-Oxley.

Non-accelerated public registrants should expect to fully comply with SOX
New SEC chair plans shift in priorities
New SEC Chair Mary Schapiro wants smaller publicly traded companies to become fully compliant with Sarbanes-Oxley. Schapiro was unanimously approved by the U.S. Senate on Jan. 22 and was officially sworn in to office on Jan. 27.

Quick Links

• Sarbanes-Oxley Act of 2002

  • Full bill text
  • Summary of the Provisions of the Sarbanes-Oxley Act of 2002
    
    

• PCAOB

  • Auditing Standard No. 1
  • Auditing Standard No. 2
  • Auditing Standard No. 3
  • Auditing Standard No. 4
  • Auditing Standard No. 5
    
    
• SEC
• Center for Auditing Quality (AICPA)
• Sarbanes-Oxley Central (AICPA)

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