Analysis Of The Sarbanes Oxley Act Of 2002, The Security And Exchange Commission

780 Words Jun 13th, 2016 4 Pages
In accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the Security and Exchange Commission (SEC) requires companies to include the report of management on the company’s internal control over financial reporting with their annual reports. The reports are to include: “ a statement of management 's responsibility for establishing and maintaining adequate internal control over financial reporting for the company; management 's assessment of the effectiveness of the company 's internal control over financial reporting as of the end of the company 's most recent fiscal year; a statement identifying the framework used by management to evaluate the effectiveness of the company 's internal control over financial reporting; and a statement that the registered public accounting firm that audited the company 's financial statements” (SEC, 2016). These rules were implemented by the SEC on August 14, 2003. In 2010 the 3M Company provided with their annual financial report two notes regarding the reporting. The notes were in reference to the management’s responsibility and oversight of the financial reporting and internal control process.
Responsibility
As stated earlier Section 404 of the Sarbanes-Oxley Act requires that management of public companies asses, report and take responsibility for information in financial reports, the needs of compliance and internal systems in place to ensure all information is to be free from bias. The audience that is reviewing the…

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