What is SARBOX?
The Sarbanes–Oxley Act of 2002 (Pub. L. No.
107-204, 116 Stat. 745, also known as the Public Company
Accounting Reform and Investor Protection Act of 2002 and
commonly called SOX or SarbOx; July 30, 2002) is a United States
federal law passed in response to a number of major corporate
and accounting scandals including those affecting Enron, Tyco
International, and WorldCom (now MCI). These scandals resulted
in a decline of public trust in accounting and reporting
practices. Named after sponsors Senator Paul Sarbanes (D–Md.)
and Representative Michael G. Oxley (R–Oh.), the Act was
approved by the House by a vote of 423-3 and by the Senate 99-0.
The legislation is wide ranging and establishes new or enhanced
standards for all U.S. public company boards, management, and
public accounting firms. The Act contains 11 titles, or
sections, ranging from additional Corporate Board
responsibilities to criminal penalties, and requires the
Securities and Exchange Commission (SEC) to implement rulings on
requirements to comply with the new law. Some believe the
legislation was necessary and useful, others believe it does
more economic damage than it prevents, and yet others observe
how essentially modest the Act is compared to the heavy rhetoric
The first and most important part of the Act
establishes a new quasi-public agency, the Public Company
Accounting Oversight Board, which is charged with overseeing,
regulating, inspecting, and disciplining accounting firms in
their roles as auditors of public companies. The Act also covers
issues such as auditor independence, corporate governance and
enhanced financial disclosure
How Does Biometrics Fit into HIPAA Compliance?
Biometrics offers the ability to control
access to data, ensure compliance with the act when properly
implemented and provides best practices for firms that are
affected by the law.
SARBOX Links on the Web