Question

Comment on perceived benefits from Section 404 of the Sarbanes-Oxley Act.

Answer 1

There have been many benefits for implementing Sarbanes-Oxley.  Companies have improved their internal controls, procedures, and financial reporting.  Many companies have improved their fraud prevention.  Systems put in place to review budgets will enable companies to be more proactive in preventing problems and improve their ability to be proactive.  Users of financial statements benefit from an improved financial product that they review and analyze to make investment decisions.

Sarbanes-Oxley boosts controls, procedures, reporting, fraud prevention, budget review, and benefits financial statement users.