Sarbanes-Oxley Section 404
A Guide for Small Business
July 14, 2017
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:
- Do my employees understand what they need to do to properly prepare external financial reports?
- 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.