Caterpillar Calls for Lower Level 404
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Caterpillar, the US heavy equipment maker has called for less emphasis on low-level transactions in setting compliance rules for Sarbanes-Oxley. The comments come in a submission to a hearing by the Securities and Exchange Commission and the Public Company Accounting Oversight Board on the notorious Section 404. Section 404 mandates that company management and external auditors have to attest to the effectiveness of internal controls over financial reporting. The section has been blamed for the high costs associated with Sarbanes-Oxley. The submission cites Enron and WorldCom as evidence. "The financial scandals by a few companies...did not occur at the transactional level, but were the result of unethical leaders and weak governance."
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Similar Areas Selected Books Keywords Sarbanes-Oxley and Caterpillar Section 404 and internal control
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