The Sarbanes-Oxley Act of 2002 (SOX) is a pivotal United States federal law enacted in the wake of major corporate scandals such as Enron and WorldCom, which exposed widespread accounting fraud and led to significant investor losses. Signed into law by President George W. Bush on July 30, 2002, it was designed to protect investors by improving the accuracy and reliability of corporate financial disclosures, enhance corporate governance, and restore public confidence in financial markets. The Act establishes stringent standards for corporate accountability, auditor independence, and financial reporting, including the creation of the Public Company Accounting Oversight Board (PCAOB) to oversee audits of public companies, requirements for CEOs and CFOs to personally certify the accuracy of financial statements, and enhanced penalties for corporate fraud and obstruction of justice. Comprising eleven titles, key provisions include internal control assessments under Section 404 and regulations addressing various aspects of corporate governance and financial regulation. While primarily applying to publicly traded companies, SOX also impacts private firms in certain circumstances. Its implementation has increased compliance costs but has been credited with reducing corporate fraud and improving transparency. Criticisms include the burden on smaller companies, leading to amendments over time. Overall, SOX represents a landmark in U.S. corporate reform, influencing global accounting standards and serving as a model for financial regulation worldwide, enforced by the Securities and Exchange Commission (SEC).