Sarbanes Oxley compliance (Sarbox compliance)

Compliance is either a state of being in accordance with established guidelines, specifications, or legislation or the process of becoming so. Compliance in the US usually refers to behaviour in accordance with legislation, such as the Sarbanes-Oxley Act (SOX) of 2002. In the financial sector, Sarbanes Oxley was enacted in response to financial scandals to protect investors and the general public from the possibility of fraudulent accounting activities by corporations through improving the accuracy and reliability of corporate disclosures.

Sarbox compliance in a regulatory context is a prevalent business concern, perhaps because of an ever-increasing number of regulations and a fairly widespread lack of understanding about what is required for a company to be in compliance with this legislation.