section 404 of the Sarbanes-Oxley Act of 2002 and the role of the CEO and CFO

U .S .A . Though , software which takes care of those internal controls under section 404 of the SOX act but also ensures the compliance of section 302 of the SOX act which specifies that management has to authenticate its fiscal results and internal controls . A software which consists online disclosure questionnaires for employees to furnish and reviews replies for employees to furnish and summarizes replies and their observations can assist the company 's disclosure committee to appraise the corporate 's financial disclosures and assist the CFO and CEO to make precise certifications

p Section 404 consists a related corporate filing mandate under which a management report has also to be attested by the external auditor assessing the company 's internal controls . It is to be noted that even before enactment of the SEC rule , CFOs and CEOs are mandated to sign the annual report and were liable for intentionally filing falsified reports as well as for insufficient internal controls

Section 404 warrants management to disclose in an annual basis its evaluation on company 's internal control structure and procedures for financial reporting and shall have to include also comments by the company 's external auditor . Section 404 also warrants CEO or CFO about the significant changes that have been made in the internal controls of the company

In U .S .A , banking industry is already subject to certification which is similar to that of section 404 of the SOX . It is to be observed that banking industry is subject to greater extent of internal control regulations under Federal Deposit Insurance Corporation Improvement Act of 1991 . [FDICIA] . Under the provisions of FDICIA , commercial banks which are operating in U .S .A are mandated to a yearly report with the regulators in which management vouch to the efficacy of their internal controls and...