Introduction
The Sarbanes–Oxley Act was enacted in the year 2002. This act is also called as 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act'. This act is commonly called as Sarbanes–Oxley Act named after sponsors Senator Paul Sarbanes and Representative Michael G. Oxley. This act has won several accolades for setting new and improved standards for all U.S. public accounting firms, public company boards and management. This bill was an answer to some of the major corporate and accounting scandals like the ones that affected Enron, Adelphia, Peregrine Systems, Tyco International, and WorldCom which not only resulted in losses of billions of dollars but also shook public confidence in the securities markets of United States of America.

Reasons for enactment of SOX
The public sector was plagued with several complex issues and conditions that together allowed for corporate frauds. Some of these factors were lack of auditor independence, inadequate oversight of accountants, stock analysts' and auditor conflicts of interests, inadequate funding of the Securities and Exchange Commission, weak corporate governance procedures, inadequate disclosure provisions, boardroom failures, risky banking practices and executive compensation in the form of stocks. Coupled with this was the internet bubble that burst in the year 2000 leading to huge losses by technology companies, which in turn infuriated a large investor base.

Applicability
This act is applicable to public companies only and not applicable to privately held
companies.

Implementation and Administration
Securities and Exchange Commission (SEC), since the passing of this law, has adapted several rules to implement the Sarbanes-Oxley Act; and has passed several rulings for requirements to comply with the law. A quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB was created. It oversees, regulates, inspects and disciplines accounting firms that act as auditors of public companies.
Contents of the Act
This Act is categorized into eleven sections called Titles. Each of these governs a specific aspect of corporate responsibility and auditing accountability. These elfexplanatory

Titles are listed below:
Title 1 - Public Company Accounting Oversight Board (PCAOB)
Title 2 - Auditor Independence
Title 3 - Corporate Responsibility
Title 4 - Enhanced Financial Disclosures
Title 5 - Analyst Conflicts of Interest
Title 6 - Commission Resources and Authority
Title 7 - Studies and Reports
Title 8 - Corporate and Criminal Fraud Accountability
Title 9 - White Collar Crime Penalty Enhancement
Title10 - Corporate Tax Returns
Title 11 - Corporate Fraud Accountability
Other important features of SOX:
This Act also emphasized disclosure controls, disclosure of off-balance sheet items in periodic reports, assessment of internal control, criminal penalties for violation of
SOX [http://www.globalcompliancepanel] and criminal penalties for retaliation against whistleblowers; and has thus become a landmark Act in the history of the American securities market.