What does Sarbanes-Oxley require in a financial report?
Section 404 of the Sarbanes-Oxley acts requires that all annual financial reports include something called an internal control report. An internal control report is (1) a statement of management’s responsibility for establishing and maintaining adequate internal control over the company’s financial reporting; (2) management’s assessment of the effectiveness of the company’s internal control over financial reporting as of the end of the company’s most recent fiscal year; (3) a statement that identifies the framework that management uses to evaluate the effectiveness of the company’s internal control over financial reporting; and (4) a statement whether the registered public accounting firm responsible for auditing the company’s financial statements in the annual report has issued an attestation report on management’s assessment of the company’s internal control over financial reporting.
