What is SOX 404?

Probably the most important section of the Sarbanes-Oxley Act of 2002 is Section 404. It requires the implementation and documentation of an adequate internal control system in the company. All reporting related internal controls should refer to this section. The management of the company has to value the usefulness of its internal control system and has to publish the results together with their reporting on a regular basis. These results shall also be attested and reported on by the auditor.