Sarbanes-Oxley Section 404: A Historical Analysis

Abstract

This paper serves the purpose of tracing the history of a selection of academic and practitioner research specifically on Section 404 of the Sarbanes-Oxley Act from the early days to today relative to its cost of compliance and related impacts. A historical review of select research will show that over a decade of compliance requirement, the act has produced improved financial reporting quality and fees have leveled off for companies that maintain adequate controls and are not found to have material internal control weaknesses.