IQ BackOffice – Sarbanes-Oxley Section 404 Compliance

Section 404 is listed under Title IV of the Arbanes-Oxley act (Enhanced Financial Disclosures) and pertains to “Management Assessment of Internal Controls”. Here is a summary:

Transactional Processes are an Area of Sarbanes-Oxley Section 404 Exposure

  • Requires Management To Acknowledge Its Responsibility
    • For The Adequacy Of A Company’s Internal Control Structure And Procedures For Financial Reporting
    • To Assess The Effectiveness Of A Company’s Internal Control Over Financial Reporting, With The Company’s Independent Auditors Being Required To Amest To Management’s Internal Control Report
  • Annual reports must contain management’s report on internal controls and the auditor’s attestation of management’s assessment
  • Management must evaluate on a quarterly basis material changes in the company’s internal controls
  • Quarterly disclosure requirements include effectiveness of controls and procedures and changes in internal controls

The IQ BackOffice Solution for Sarbanes-Oxley Section 404 Compliance

  • Documents internal control procedures
  • Enforces internal control procedures
  • Maintains an audit trail for each transaction that is easily auditable
  • Reduces cycle times, ensuring outstanding transactions are accounted for during the appropriate periods