Hermanson, Dana R.; Ye, Zhongxia Shelly - 2009
During the first year of the SOX Section 404 reporting requirements (effective November 15, 2004), many adverse Section … initial Section 404 reports, we look back in time to previous disclosures under Section 302 and find that only 27 percent of … 404 audit reports were a "surprise'' in that management had not previously warned investors of the internal control …