The Sarbanes-Oxley Act's Section 404 creates changes in both how companies document and evaluate internal control and how auditors audit and report on internal control.

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Section 404 of the Sarbanes-Oxley Act requires companies to assess and report on the effectiveness of their internal control over financial reporting (ICFR). This means that companies must document and evaluate their internal controls to ensure they are effective in preventing and detecting errors or fraud in financial reporting. Additionally, auditors are required to audit and report on the effectiveness of a company's ICFR, adding another layer of scrutiny to the process. These changes were implemented to improve the reliability and accuracy of financial reporting in public companies.

The Sarbanes-Oxley Act's Section 404 Creates Changes in Both How