The Sarbanes-Oxley Act is a U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations. It was created in response to major accounting scandals involving companies like Enron and WorldCom. The act established strict regulations for financial practices and corporate governance, requiring companies to maintain accurate records and implement internal controls. One of the key features of the Sarbanes-Oxley Act is the requirement for public companies to have their financial statements audited by an independent auditor. This helps ensure transparency and accountability, making it harder for companies to manipulate their financial results. Overall, the act aims to restore public confidence in the financial markets.