What does Sarbaines Oxley compliant mean?
I see many firms advertising that they assist with "Sarbaines Oxley compliance". Can you explain the legislation and who is affected? How does one become "Sarbaines Oxley compliant"?
- Nick NLv 51 decade agoFavorite Answer
The Sarbanes-Oxley act was sponsored by Senator Paul Sarbanes and Representative Michael Oxley, and is a response to the auditing scandals surrounding Enron, WorldCom, and others. Essentially it aims to protect investors by requiring public companies to adhere to certain standards around auditor independence, information integrity, and greater financial disclosure.
From an IT perspective S-Ox compliance revolves around preserving information and ensuring that the systems that maintain financial records are capturing all the correct data. Of course, S-Ox compliance can be rather complex and counterintuitive, so there are plenty of consultants who earn a living by making companies S-Ox compliant, as it is a requirement for all public companies.Source(s): http://en.wikipedia.org/wiki/Sarbanes_oxley