Signed into law July 30 2002

A direct result of corporate scandals, such as Enron and WorldCom

Introduced legislative changes to financial and corporate regulations

Intended to “deter and punish” corporate and accounting fraud and corruption, ensure justice for wrongdoers, and protect the interests of workers and shareholders” (Quote: President Bush)

Section 802, Regulation S-X, Rule 2 -06

All audit and review-related information must be retained for 7 years

The penalty for anyone who knowingly destroys documents or files that may relate to a federal investigation or a bankruptcy filing can be fined and/or imprisoned for up to 20 years