SOX 404

SOX Section 404 requires management and the external auditor to report on the adequacy of the company’s internal control on financial reporting (ICFR). The report must also “contain an assessment, as of the end of the most recent fiscal year of the Company, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting”. To do this, managers are generally adopting an internal control framework such as that described in COSO.

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