The Sarbanes-Oxley Act establishes a new regulatory body to oversee public company auditors, makes auditors more closely connected to their clients, and places direct responsibility for the audit relationship on the auditor himself.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors by improving the accuracy and reliability of corporate disclosures.

Regulatory Body

A regulatory body is an organization established by the government to regulate specific industries, sectors, or practices, ensuring compliance with laws and protecting public interest.

Auditors

Professionals who examine and verify a company's financial records and practices to ensure accuracy and compliance with regulations.