What is Sarbanes Oxley?

The Sarbanes-Oxley Act of 2002 is a United States federal law for regulation of corporate governance and accountability across multiple aspects of corporate business practices and the securities market. SOX was legislated as a result of a series of corporate accounting scandals in the US that had resulted in huge losses in the financial markets and shaken the investor trust. The stated goal of SOX is “to protect investors by improving the accuracy and reliability of corporate disclosures.”
Key Requirements include:
CEO and CFO to take responsibility of the financial statements
Set up internal controls
Maintain compliance documentation
Formalize and Implement data security policies
External audit by an independent firm