A recent study from Audit Analytics, “SOX 404 Disclosures: A Fifteen-Year Review,” that analyzed internal control over financial reporting (ICFR) disclosures over the past 15 years reveals some interesting trends.
Part of the original Sarbanes Oxley Act of 2002, Section 404—or SOX 404 as it is often referred—mandates large companies (accelerated filers) review their ICFR to determine whether those controls are effective. That determination, known as adverse auditor attestations, helps those companies establish whether their financial statements are accurate and complete.
