Section 404 of the Sarbanes-Oxley Act (SOX) is credited with removing internal financial control systems in public companies since the cost of doing so is thought to be exorbitant by small firms.

Question

Quizplus · Accepted Answer

Section 404 of SOX actually requires public companies to establish and maintain internal control over financial reporting, not remove it. However, it has been criticized for adding significant costs and administrative burdens, particularly for small companies.

Section 404 of the Sarbanes-Oxley Act (SOX) Is Credited with Removing