Named forSenator Paul Sarbanes(D-MD) andRepresentative Michael Oxley (R-OH) Sarbanes Oxley
Overview• The main purpose of the bill is to promote conﬁdence in businesses, and clarity amongst large corporations.• Received much support because of large business mistakes around time of passage.• Makes it easier to audit large companies.
Bill Beginnings• The Sarbanes-Oxley Act was originally 2 separate bills.• Oxley’s bill was called the Corporate and Auditing Accountability Responsibility and Transparency Act or CAARTA for short.
In the House• CAARTA is introduced to the House of Representatives and passed through on April 24, 2002 (334 to 90)• George Bush voices support for bill.
The Senate Banking Committee• Both Bills go on to the Senate Banking committee• Sarbanes’ Bill is passed on June 18,2002 (17 to 4)
Back to the House• Sarbanes’ bill is passed through the House and goes to the Senate.
In the Senate• Sarbanes’ Bill is proposed to the Senate the same day that a subsidiary of Verizon reveals that it over stated it earnings by 3.8 billion dollars.• If Sarbanes’ Bill was in place it could have prevented the accident and saved millions.• Sarbanes’ Bill is passed by a full Senate on July 15, 2002. (97 to 0)
Conference Committee• Because Sarbanes’ and Oxley’s bills are similar the House and Senate decide to create a committee to combine the two.• Much of the new “Sarbanes-Oxley Act” or “SOX” is based on Sarbanes bill with minor reenforcement to certain measures coming from Oxley’s Act.• The Committee aproves SOX on July 24,2002
Back to House and Senate• The new SOX act goes back to the House and Senate and is receives massive support.• SOX is passed 423 to 3 in the House and 99 to 0 in the Senate.
Executive Branch• The SOX act was then sent to President Bush who signed it in to law calling it, “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt.”