How to Comply With Sarbanes-Oxley Section 404: Assessing the Effectiveness of Internal Control

Chapter 1. The Evaluation Approach

CHAPTER SUMMARY Overview of the SEC rules requiring management's assessment of the effectiveness of the entity's internal control over financial reporting Description of a risk-based, top-down approach to the evaluation of an entity's internal control and disclosure controls and procedures Summary of the external auditor's responsibilities and how management can work with its auditors to create an efficient internal control audit