what caused the sarbanes-oxley act of 2002
This act set new standards for public accounting firms, corporate management, and corporate boards of directors. Sarbanes-Oxley, or SOX, is a federal law that is the most comprehensive reform of business practices since Franklin D. Roosevelt was President of the U.S. and passed the New Deal.ulti-million dollar fines can result and imprisonment of the CEO or CFO. Penalties are based on the section of SOX that the company is not in compliance with. In summary, the Sarbanes-Oxley Act of 2002 is probably the best piece of legislation to protect investors in modern times.