Thank you for your inquiry about the advantages of adopting Section 404 of Sarbanes-Oxley. There are several significant benefits.
It raises the profile of the company in the eyes of investors as well as enhancing internal control awareness and compliance for the entire organization.
Further, adopting Section 404 will increase the understanding of internal controls company-wide and enhance the ability to monitor compliance because an emphasis on financial responsibility and integrity will set a tone for care and vigilance. While significant compliance costs would be incurred initially, experience suggests that these costs will decline as time passes. For example, audit costs are usually lower when a company has an effective system of internal
It raises the profile of the company in the eyes of investors as well as enhancing internal control awareness and compliance for the entire organization.
Further, adopting Section 404 will increase the understanding of internal controls company-wide and enhance the ability to monitor compliance because an emphasis on financial responsibility and integrity will set a tone for care and vigilance. While significant compliance costs would be incurred initially, experience suggests that these costs will decline as time passes. For example, audit costs are usually lower when a company has an effective system of internal