[Day 4] 3. Sarbanes-Oxley Act (SOX)

What is it?

• A U.S. federal law passed in 2002 to protect investors by improving the accuracy and reliability of corporate financial reporting.
• Created in response to major corporate scandals (e.g., Enron, WorldCom).

Purpose

• Ensure transparency and accountability in financial reporting.
• Prevent corporate fraud.

Why is it Important?

• Enhances trust in financial markets.
• Encourages ethical behaviour in corporations.
• Drives compliance requirements for IT and security teams (e.g., safeguarding financial data).