In public companies, a committee of non-executive directors that is responsible for oversight of financial reporting, internal and external audits, compliance with regulatory codes, and risk management. This committee enhances accountability, auditor independence, and public confidence.
The Enron scandal is a complex case of fraudulent accounting that led to the collapse of the energy giant Enron in 2001, one of the largest corporate bankruptcies in U.S. history, which subsequently led to significant legislative changes.
Denoting assets or liabilities that do not appear on the balance sheet of a company. Various off-balance-sheet arrangements have been entered into by companies wishing to avoid full disclosure of their assets and liabilities through complex legal agreements, joint ventures, specially created subsidiaries, and structured finance arrangements.
The Public Company Accounting Oversight Board (PCAOB) is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB oversees the conduct of auditors of public companies to ensure accurate and reliable financial reporting, enhancing investor confidence in the capital markets.
The Sarbanes-Oxley Act of 2002, often abbreviated as SOX, is a United States federal law that mandates various regulations to improve the accuracy and reliability of corporate disclosures and to protect investors against fraudulent financial practices.
Legislation introduced in response to major corporate financial scandals to enhance corporate transparency and accountability.
The Sarbanes-Oxley Act of 2002, often referred to as Sarbox or SOX, is a landmark piece of U.S. legislation designed to enhance corporate governance, financial transparency, and auditing standards in response to a series of high-profile corporate scandals, including the infamous Enron scandal.
The Statutory Audit Directive, adopted by the European Union in 2006, aims to strengthen public confidence in the auditing profession by increasing transparency, accountability, and compliance with stringent auditing standards.
