Compliance Week: 7.7 Percent Of 10-Ks Receive SOX 404 Adverse Opinions

In its Tuesday, April 12, 2005, edition, Compliance Week will report that 7.7 percent of the internal control assessments filed this proxy season have been given "failing grades" by the companies' external auditor.

Section 404 of the Sarbanes-Oxley Act requires that management of a public company assess the effectiveness of its internal control over financial reporting. The company's independent auditor must then sign off on management's assessment.

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