The reasoning behind the requirements of the Sarbanes-Oxley Act's section 404 (attestation on internal control over financial reporting)is that
A)effective controls result in greater profits to organizations,reducing business failures.
B)effective controls reduce the likelihood of future misstatements in the financial statements.
C)better internal controls can be implemented at lower cost,improving product quality.
D)automated controls improve customer service,resulting in higher product sales.

Question

Quizplus · Accepted Answer

Section 404 of the Sarbanes-Oxley Act requires companies to provide an attestation on their internal control over financial reporting. The main reasoning behind this requirement is to reduce the likelihood of future misstatements in the financial statements, providing greater transparency and accuracy for investors and stakeholders. Effective controls can help prevent financial fraud and errors, ultimately leading to more reliable financial reporting.

The Reasoning Behind the Requirements of the Sarbanes-Oxley Act's Section