For companies listed in the US, the US government issued Sarbanes-Oxley Act in 2002. Article 404 is one of the most importance.
Article 404 requires the listed companies who meet certain criteria to provide assurance for the internal control, which provides more reliability for the financial report. In order to comply this rule, on the one hand, the company's financial operation, internal procedures and decision making procedure and reporting procedures would be more rigorous; on the other hand, the listed companies would have to pay much more than before, including plenty of manpower, financial resources and time. All these factors would affect the company's net profit and earning per share, and further affect the company’s stock price. Therefore, during the preparation to meet the Act' requirements, the support of consultants who specialize in Sarbanes-Oxley Act and auditing firms is essential.
Professionals of Lee & Lee Associates can help you establish and reorganize the internal control procedures, provide professional advices to internal control evaluation report and help your compliance with Article 404 in an efficient manner.