Examples of SOX 404 in a sentence
The findings suggest that auditor’s SOX 404 reports may not be very effective for signaling the quality of internal control over financial reporting or the auditor’s ability to compensate for weak internal control, which is a hallmark of the audit risk model.Regulatory Reviews of Audit Firms Perhaps the most direct outcomes of audit quality are the results of regulatory reviews of audit firms.
For a sample of financial statement restatements (i.e., firms had a material weakness at the time of the misstatement), they find a large number of material weaknesses are unreported in a timely manner (i.e., only 32.4 percent of firms receive an adverse SOX 404 report) and that the proportion has declined over time.
SOX 404 requires us to assess the effectiveness of our internal controls over financial reporting annually, and obtain an opinion on these controls from our Independent Registered Public Accounting Firm.
While relatively little research has been performed to date, Rice and Weber (2012) provide some empirical evidence on the effectiveness of SOX 404 reports.
Such information includes undisclosed audit information such as materiality, independence, significant audit risks, and the audit partner’s name.In addition, the accuracy of auditors’ SOX 404 reports also can signal audit quality.
We focus on the bunching period of 2003 to 2007 to identify the combined value of SOX 404 internal control exemption plus delayed filing of 10-Ks and 10-Qs. Our non-bunching period is 1994 to 2002.Last, we analyze firms’ bunching around the $700m threshold for Emerging Growth Company status.
The Company follows Sarbanes-Oxley (SOX) 404 and other applicable requirements with respect to our income tax and indirect tax processes.
Later that day, the Company issued a press release that claimed the terminationwas the result of [Ernst & Young] entering into a SOX 404 service agreement including performing the test of the Company‘s internal controls from 2008 through 2010.
The Committee was informed of the internal testing plan of the Company with respect to year 2020, and of its scope for fiscal year 2021 in accordance with the SOX 404 regulation.
Critique the statements below from the Chief Financial Officer of ABC with regard to best practices for adherence to SOX 404: A.