Who is subject to the Sarbanes-Oxley Act?
Public companies issuing securities, public accounting firms, and firms providing auditing services whether they are domestic or foreign must comply with Sarbanes-Oxley. What is required for Sarbanes-Oxley Section 404? In its annual report, the Company must report on internal controls over its financial reporting. Four key elements must be included in this report: • Statement of Responsibility by Company Management (the CEO and CFO) for establishing and maintaining an adequate internal control structure and procedures for financial reporting. • Statement identifying the framework used by management to evaluate the effectiveness of the Company’s internal control over financial reporting • Management’s Assessment of the effectiveness of Internal Controls over financial reporting • Attestation by the company’s external auditor on Management’s assessment of the effectiveness of the company’s internal controls and procedures for financial reporting. When is compliance required? Although the
