Prior to SOX, external auditors often reported to a company's upper management.

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Prior to SOX, external auditors often reported to a company's upper management, which created conflicts of interest and compromised the independence of the audit function. The Sarbanes-Oxley Act of 2002 established measures to enhance auditor independence, including the requirement for auditor rotation, the prohibition of certain non-audit services, and the establishment of the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing profession.

Prior to SOX, External Auditors Often Reported to a Company's