Video: Overview of the Sarbanes-Oxley Act of 2002

In this lesson, Nick Palazzolo discusses the Sarbanes-Oxley Act of 2002, which was established in response to the Enron scandal in an effort to prevent financial reporting fraud and ensure accurate financial reporting. He provides an overview of the act's titles and its focus on issues such as independence, conflicts of interest, expanded corporate disclosures, and penalties for non-compliance. He also highlights the significance of the act on the financial requirements of public companies and the role of the audit committee, which is responsible for hiring public accountants and overseeing auditing practices. The structure of a company's governance is also briefly discussed, along with the responsibilities of other committees in assisting the board of directors. Overall, this lesson offers valuable insights into the Sarbanes-Oxley Act and its impact on the auditing profession.