Who is responsible for compliance with SOX section 404:
A) management.
B) the auditors.
C) both management and the auditors.
D) It depends on the specifics.

Question

Quizplus · Accepted Answer

Section 404 of the Sarbanes-Oxley Act (SOX) requires management to establish and maintain adequate internal control over financial reporting (ICFR) and assess its effectiveness. Therefore, management is primarily responsible for compliance with SOX section 404. While auditors are responsible for auditing the effectiveness of ICFR, their responsibility is secondary to management's.

Who Is Responsible for Compliance with SOX Section 404