What does Section 404 of the Sarbanes-Oxley Act of 2002 require?
A) The external auditors must create an adequate internal control structure for the firm being audited.
B) The external auditors must approve of all internal auditors hired by a firm.
C) The inclusion of an internal control report in the annual report.
D) The external auditors need to perform internal audit services.

Question

Quizplus · Accepted Answer

Section 404 of the Sarbanes-Oxley Act of 2002 requires that companies include an internal control report in their annual report to provide assurance to investors and the public that the company has adequate internal controls in place to prevent fraud and financial misstatements. The report must include management's assessment of the effectiveness of internal controls and the external auditor's attestation to the accuracy of management's assessment.

What Does Section 404 of the Sarbanes-Oxley Act of 2002