The Sarbanes-Oxley Act's 404 Reports require management and auditors to report on
A) The current financial condition of the firm and perceived threats to its financial condition.
B) The academic background and experience of the company's accounting leadership.
C) The effectiveness of the internal controls of the company's accounting information system.
D) The quality of the project management planning.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act's 404 Reports require management and auditors to report on the effectiveness of the internal controls of the company's accounting information system. The purpose of this requirement is to ensure that companies have adequate controls in place to prevent financial fraud and misstatements. Options A, B, and D are not directly related to the 404 Reports requirements.

The Sarbanes-Oxley Act's 404 Reports Require Management and Auditors to Report