Question

SOX 404 says the report on the firm’s internal controls must include all of the following except

a. A statement that management acknowledges its responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting put into place and evaluated by management

b. An assessment, by management, as of the end of the fiscal year, of the effectiveness of the internal control structure and procedures for financial reporting

c. An assessment, by management, as of the end of the fiscal year, of the efficiency of the internal control structure and procedures for financial reporting

d. An attestation by the company’s external auditor with reasonable assurance that the assessment made by management is accurate

Answer 1

The answer is option c

Explanation:

As per SOX 404 report on firms internal control must include the following:

i. A statement on responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting.

ii. An assessment, as of the end of the most recent fiscal year of the issuer, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.

iii. An attestation by the company’s external auditor with reasonable assurance that the assessment made by management is accurate.