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Sarbanes-Oxley News & Developments
Sarbox 404 Costs 63%Higher than Expected 404 compliance goes into effect Nov. 15, 2004.
> > Companies seem to be spending more money than they figured to comply with Section 404 of The Sarbanes-Oxley Act which goes into effect Nov. 15.
The increase in Section 404 compliance costs stems from unexpected burdens in connection with the two major requirements of the provisions.
1) The annual report for a company must contain a statement listing the responsibility of management for adequate internal-controls structure and procedures for financial reporting and management assessment of those procedures.
2) The provision also requires the auditor of the company to report and sign off on that assessment of the effectiveness, in accordance with standards set up by the PCAOB.
Source: CFO
Published:2004-08-12
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