SEC statement and report on internal controls
17 May 2005
The US Securities and Exchange Commission has released a statement about the first year's experience in applying the internal control provisions (Section 404) of the Sarbanes-Oxley Act.
The two main conclusions in the Commission's statement are:
- Compliance with Section 404 is producing benefits, including a heightened focus on internal controls at the top levels of public companies.
- Implementation in the first year also resulted in significant costs, and the process can be made more effective and efficient.