302 vs. 404 1168

  • I am having trouble understanding the difference between the requirements of 302 and 404.
    Maybe I am trying to make it too difficult.
    Is 302 a quarterly certification and 404 is annual?

  • 404 is the Management Assessment of Internal Control which is annual and probably about 90% of everything you’ve heard about SOx.%0ASection 302: Corporate Responsibility For Financial Reports.%0AThe CEO and CFO of each issuer shall prepare a statement to accompany the audit report to certify the ‘appropriateness of the financial statements and disclosures contained in the periodic report, and that those financial statements and disclosures fairly present, in all material respects, the operations and financial condition of the issuer.’

  • Are the requirements for compliance the same?

  • sec 302: to ensure that all material information is disclosed by an organisation in the reports. So, controls must be put in place to ensure that all the material information is disclosed including any significant changes to processes or the controls. Stress is on Disclosure of material info and controls to ensure the disclosure.
    sec404: final audit report shall have a report of management’s assessment of internal contral over financial reporting. Stress is on management’s certification that appropriate internal controls are in place that can effectively detect or prevent errors or fraud that could result in material misstatements in teh financial statements.
    Diff: disclosure controls (302) : internal controls(404)

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