SOX Section 404 — Management Assessment of Internal Controls
Enforced by: SEC
Current as of July 30, 2002
Plain Language Summary
Section 404 is the most compliance-intensive part of SOX. Annual management assessment of internal controls over financial reporting (ICFR) required. External auditors must attest for large companies.
Each annual report shall contain an internal control report, which shall: state the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and contain an assessment, as of the end of the most recent fiscal year, of the effectiveness of the internal control structure and procedures for financial reporting. Each registered public accounting firm that prepares the audit report shall attest to, and report on, the assessment made by management.