Section 404 of the Sarbanes-Oxley Act has received the most attention. 404 deals with the management assessment of internal controls. Perhaps because of the events (Enron, WorldCom et al) which brought Sarbanes Oxley into being, internal controls were highlighted.

The section requires that the company issue an Internal Control Report in the Annual Report . This document states the responsibilty of the management for establishing and maintaining adequate control structures and financial reporting. Secondly the internal control report must show the effectiveness of the controls.

As part of the audit process, the auditor has to attest and report on the managements view.