By  on April 18, 2005

NEW YORK — Complying with Section 404 of the Sarbanes-Oxley Act is turning out to be a heck of a headache, and an expensive one — especially for smaller-sized companies.

Section 404 requires managers of public companies to establish and maintain internal controls with regard to financial reporting. The section also requires the auditing firms to not only sign off on the financial reports, but attest that the management of the audited company made the necessary internal assessments.

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