Introduction The Sarbanes-Oxley Act, or SOX Act, was signed into law on July 30, 2002. Since it was signed into law that summer it has changed the way public companies manage accounting and auditing. The federal law was created following a series of large companies involved in scandals. For example, a company like Enron was involved in accounting fraud in late 2001 when it used false financial statements. Once Enron was caught, he had many lawsuits filed against them and had to file for bankruptcy. It was this scandal that played a major role in producing the Sarbanes-Oxley law in 2002. Sarbanes-Oxley law: What is it? The Sarbanes-Oxley Act is also known as the “Public Company Accounting Reform and Investor Protection Act” or also the “Public Company Accounting Reform and Investor Protection Act” Corporate and Audit Liability and Accountability Act '. The law contained a total of 11 sections ranging from penalties that criminals could be subject to or responsibilities that corporate boards of directors could face. The law was intended to protect people who invest in or try to buy shares from companies by making financial reports and statements more reliable and meting out punishments for those who fail to comply with the law. The 11 Sections included:1. Public Company Accounting Oversight Board (PCAOB)2. Auditor independence3. Corporate Responsibility4. Enhanced financial reporting5. Analyst conflicts of interest6. Commission resources and authorities7. Studies and reports8. Corporate responsibility and criminal anti-fraud9. Improving sanctions for white collar crimes10. Corporate tax returns11. Corporate Responsibility Against Fraud Who Created the SOX Act? This act was written by Senator Paul Sarbanes and Representative Michael Oxley. Hence the name Sarbanes-Oxley Act. Michael Oxley was a Republican... mid-newspaper... December 2013. .NP, nd Web. December 2, 2013. "Sarbanes-Oxley Basics." Sarbanes-Oxley Basics. DMPL, 2012. Web. 29 November 2013. .Spurzem, Bob. “Sarbanes-Oxley (SOX) Act.” What is it? TechTarget, 2007. Web. November 30, 2013. “The Laws Governing the Securities Industry.” The laws governing the securities industry. United States Securities and Exchange Commission, n.d. Web. 02 December 2013. “The Sarbanes-Oxley Act 2002.” The Sarbanes-Oxley Act of 2002. Np, 2007. Web. 30 November 2013. .Zameeruddin, Rizvana. “Sarbanes-Oxley Act of 2002.” Sarbanes-Oxley Act of 2002. Np, nd Web. November 30 2013. .