Understanding SOX 404: An Overview

Cpeonline19 May, 2025Business

The Sarbanes-Oxley Act of 2002 (SOX) introduced sweeping changes to financial regulation and corporate governance in response to major accounting scandals such as Enron, WorldCom, and Tyco. Among its most impactful provisions is Section 404, commonly referred to as SOX 404. This section has had lasting implications for how public companies in the United States manage, test, and report on internal controls over financial reporting (ICFR).