What is SOX Section 404 compliance in plain English?
The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to large corporate financial scandals involving Enron, WorldCom, and Arthur Andersen. The intent of the SOX legislation is to ensure financial reporting accuracy to avert recurrence of these tragic scandals. For non-accelerated filers, SOX Section 404(a) requires Management’s assessment regarding the effectiveness of internal controls over financial reporting to be included as a report submitted with the Company’s Annual Report on Form 10-K for years ending December 15, 2007 or later. Section 404(b) requires an auditor’s attestation regarding the effectiveness of internal controls to be included as a report submitted with the Company’s Annual Report on Form 10-K for years ending December 15, 2008 or later. The SEC Proposed Rule 33-8889 would extend the requirement date of Section 404(b), the auditor’s attestation, from being required for years ending December 15, 2008 or later to being required for years ending December 15, 2
The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to large corporate financial scandals involving Enron, WorldCom, and Arthur Andersen. The intent of the SOX legislation is to ensure financial reporting accuracy to in part, avert reocurrence of these tragic scandals. For non-accelerated filers, SOX Section 404(a) requires Management’s assessment regarding the effectiveness of internal controls over financial reporting to be included as a report submitted with the Company’s Annual Report on Form 10-K for years ending December 15, 2007 or later. Section 404(b) requires an auditor’s attestation regarding the effectiveness of internal controls to be included as a report submitted with the Company’s Annual Report on Form 10-K for years ending December 15, 2008 or later. The SEC Proposed Rule 33-8889 would extend the requirement date of Section 404(b), the auditor’s attestation, from being required for years ending December 15, 2008 or later to being required for years ending Dece
