Section 404 is listed under Title IV of the Arbanes-Oxley act (Enhanced Financial Disclosures) and pertains to “Management Assessment of Internal Controls”. Here is a summary:
Transactional Processes are an Area of Sarbanes-Oxley Section 404 Exposure
- Requires Management To Acknowledge Its Responsibility
- For The Adequacy Of A Company’s Internal Control Structure And Procedures For Financial Reporting
- To Assess The Effectiveness Of A Company’s Internal Control Over Financial Reporting, With The Company’s Independent Auditors Being Required To Amest To Management’s Internal Control Report
- Annual reports must contain management’s report on internal controls and the auditor’s attestation of management’s assessment
- Management must evaluate on a quarterly basis material changes in the company’s internal controls
- Quarterly disclosure requirements include effectiveness of controls and procedures and changes in internal controls
The IQ BackOffice Solution for Sarbanes-Oxley Section 404 Compliance
- Documents internal control procedures
- Enforces internal control procedures
- Maintains an audit trail for each transaction that is easily auditable
- Reduces cycle times, ensuring outstanding transactions are accounted for during the appropriate periods
