The Sarbanes-Oxley Act of 2002 was passed by Congress to better protect investors. Section 404 of this act (SOX 404) requires companies to review their internal controls over financial reporting (ICFR) and declare whether they are “effective” or “ineffective.” In other words, they must determine if their ICFR are adequate enough to produce financial statements that are accurate and complete.

Audit Analytics’ most recent report takes a closer look at trends in SOX 404 disclosures over a sixteen-year period, considering both auditor attestations and management-only assessments.