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(SOX) 404 Compliance

Section 404 of the Sarbanes-Oxley Act requires the auditor to form an opinion (404b) about whether management’s assessment (404a) of the effectiveness of the internal control is fairly stated in all material respects.

SEC Approves New Guidance Compliance Re: SOX 404

As expected, the Securities and Exchange Commission (SEC) voted May 23, 2007 to adopt final guidance for management on evaluating and assessing internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002. The SEC also said it will not delay implementation for nonaccelerated filers, which means those companies must comply with management reporting provisions by their fiscal year ending after December 15, 2007, and the auditor attestation requirement a year later, as planned.

The experienced professionals at Freed Maxick CPAs use a multi-phased approach to help you build towards Section 404 compliance. We develop a plan to assess and document your company’s internal controls.

Our approach is tailored to the specific needs and complexities of your company and includes four phases:

  1. Planning
  2. Assess design effectiveness
  3. Assess operating effectiveness
  4. Ongoing monitoring

At Freed Maxick, our SOX consulting methodology follows the Committee of Sponsoring Organizations (COSO) of the Treadway Commission guidelines, the standard for internal control. COSO is not only an integral component of our methodology, but the essence of the framework is built into our software tools.

Freed Maxick CPAs is Western and Upstate New York’s (NY) largest public accounting firm and a Top 100 firm in the U.S. Freed Maxick provides, audit, tax and consulting services to private and public (SEC) companies in Buffalo, Rochester, Syracuse and Albany New York. Freed Maxick has vast national and international resources to help your business expand nationally and internationally.

CONTACT US to learn more about our Consulting Services.

ABOUT US: Freed Maxick CPAs is Western and Upstate New York’s (NY) largest public accounting firm and a Top 100 firm in the U.S. Freed Maxick provides audit, tax and consulting services to closely-held businesses, public (SEC) companies, not-for-profits and governmental entities in Buffalo, Rochester, Syracuse, Albany and NYC, New York.


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