What is Section 404?
Section 404 requires the Commission to adopt rules
requiring a company's management to present an internal
control report in the company's annual report containing:
(1) a statement of the responsibility of management for
establishing and maintaining an adequate internal control
structure and procedures for financial reporting; and
assessment, as of the end of the company's most recent fiscal
year, of the effectiveness of the company's internal control
structure and procedures for financial reporting. Section 404
also requires the company's registered public accounting firm
to attest to, and report on, management's assessment.