SEC: Section 404 implementation considered

A roundtable discussion on the implementation of Section 404 of the Sarbanes-Oxley Act revealed that many companies have experienced benefits and improvements to their internal controls as a result, according to William Donaldson, chairman of the Securities and Exchange Commission (SEC).

Donaldson said that the discussion had also revealed that the requirements have led to an improved focus on internal controls by all stakeholders involved. This focus, said Donaldson, has the potential to pay future dividends in terms of investor confidence, transparency and the quality of financial statements.

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