On July 30, 2002, the Sarbanes-Oxley Act (Public Law 104-204) went into effect, and changed the corporate landscape in the United States in regard to financial reporting and auditing for publicly traded companies. The law establishes stringent financial reporting requirements for companies doing business in the United States. It was designed to make the executives of publicly traded companies more responsible and accountable for oversight of their companies.

On July 30, 2002, the Sarbanes-Oxley Act (Public Law 104-204) went into effect, and changed the corporate landscape in the United States in regard to financial reporting and auditing for publicly traded companies. Written to address many of the issues brought to light during the incidents the Enron and Arthur Andersen, the law establishes stringent financial reporting requirements for companies doing business in the United States.

The federal legislation, passed in 2002, that requires, among other items, CEO/CFO certification of results and internal controls, independent audit committees, and outside auditor lead partner rotation. It also prohibits loans to executives and directors.