Sarbanes-Oxley Section 404
A Guide for Small Business

For 2007 annual reports, smaller public companies need to assess their internal control over financial reporting.

It doesn't have to be a chore.

Beginning Your Evaluation

Your company's evaluation of the effectiveness of its internal controls begins by having the certifying officers consider two basic questions:

1. Do my employees understand what they need to do to properly prepare external financial reports?
2. What information do I need to make sure they have done those things?

The SEC's new management guidance suggests considering these questions in three steps.

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