Sarbanes-Oxley Act (SOX)
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Created Public Company Accounting Oversight
Board.
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Prohibits accounting firms from both auditing
financial statements of a firm and providing
certain consulting services for the same client.
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Requires periodic rotation of lead auditors.
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Requires public companies to issue internal
control reports and the outside auditor to
evaluate the client’s internal controls.
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Provides stiff penalties for violators.
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