Happy 10th Birthday SOX!

The Sarbanes-Oxley Act had its 10^th birthday on July 29^th. Also known as the 'Public Company Accounting Reform and Investor Protection Act',it was made in the time of corporate fraud and accounting trickery. The SOX Act was drafted and designed to improve accountability and transparency by strengthening internal controls over company accounts and set criminal charges for executives involved in fraud. One section of the law requires corporate executives to certify financial statements and can impose jail sentences for up to 20 years for violations.

The SOX Act was intended to improve investor confidence, which had been broken by corrupt companies such as Enron, WorldCom, and Adelphia. Although the road to implementing the SOX Act was not easy, many agree that it achieved much more than it was intended too. Companies have grown to understand that SOX-related compliances and controls can help to diminish risks. Over the past 10 years, GRC has helped to increase profits of public companies while safeguarding stakeholder’s investments.