To achieve the objectives of sections 302 and 404 of the Sarbanes-Oxley Act, management and independent auditors should:

Question

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Emphasizing areas where the greatest risk of fraud or material misstatement is likely to occur is the most effective way to achieve the objectives of sections 302 and 404 of the Sarbanes-Oxley Act. Disclosing the minutia of the internal control structure may not be necessary and could potentially create more confusion than clarity. Conducting a cost-benefit analysis is important, but should not dictate whether or not to adopt these sections as they are required by law. Analyzing all financial transactions would be a daunting task and may not necessarily lead to achieving the objectives of these sections. While working together is important, designing the most effective internal control system should prioritize areas at the greatest risk.

To Achieve the Objectives of Sections 302 and 404 of the Sarbanes-Oxley