SOX 404 Efficiency Diagnostic
Sarbanes-Oxley Act Section 404 (SOX 404) mandates that management must assess and report on the effectiveness of a company’s internal controls over financial reporting. This mandate also includes an assessment from a company’s external auditors attesting to management’s internal controls. However, the Securities and Exchange Commission (SEC) approved guidance to streamline SOX 404 compliance efforts, and management should take advantage of this guidance.