Following is an excerpt from the Sarbanes-Oxley Act of 2002.|
To read the rest of TITLE II--AUDITOR INDEPENDENCE,
SEC. 404. MANAGEMENT ASSESSMENT OF INTERNAL CONTROLS.
(a) RULES REQUIRED- The Commission shall prescribe rules requiring each annual report
required by section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15
U.S.C. 78m or 78o(d)) to contain an internal control report, which shall--
(1) state the responsibility of management for establishing and
maintaining an adequate internal control structure and procedures for financial
(2) contain an assessment, as of the end of the most recent
fiscal year of the issuer, of the effectiveness of the internal control
structure and procedures of the issuer for financial reporting.
(b) INTERNAL CONTROL EVALUATION AND REPORTING- With respect to the internal control
assessment required by subsection (a), each registered public accounting firm
that prepares or issues the audit report for the issuer shall attest to, and
report on, the assessment made by the management of the issuer. An attestation
made under this subsection shall be made in accordance with standards for
attestation engagements issued or adopted by the Board. Any such attestation
shall not be the subject of a separate engagement.