Question
Which of the following is/are not a benefit of compliance with Section 404? -Significant improvement in the quality of the financial reporting process in the
Which of the following is/are not a benefit of compliance with Section 404?
-Significant improvement in the quality of the financial reporting process in the sense that the first year of compliance (2004) revealed one in six large companies had material weaknesses in their internal control over financial reporting (ICFR) compared with that of only 1 in 15 companies in the second year of compliance (2005) -Significant positive impacts on stock prices of companies that made improvements in their ICFR -A deterrent to appropriate financial reporting behavior by encouraging and enforcing compliance with inadequate and ineffective ICFR on the part of employees -A mechanism through the independent audit of ICFR to more effectively oversee the quality of financial reporting
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