Audit Analytics recently released a new report, SOX 404 Disclosures: An Eighteen-Year Review. This annual report takes a closer look at trends in internal controls over financial (ICFR) reporting disclosures, spanning from fiscal years 2004 to 2021. Section 404 of the Sarbanes-Oxley Act of 2002 requires companies to review their ICFR and disclose whether they are “effective” or “ineffective.” Effective internal controls are essential in ensuring that financial statements are accurate and complete. Ineffective internal controls pose a risk for stakeholders, as vital information disseminated by the company may be incorrect. 

In this article, Audit Analytics further examines trends in ICFR disclosures over 18 years.