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Musya8 [376]
3 years ago
11

Does it matter that Groupon reported its weakness in internal controls as a disclosure control under SOX Section 302 rather than

pointing it out in its report on internal controls under Section 404
Social Studies
1 answer:
skelet666 [1.2K]3 years ago
4 0

Answer:

It matters as section 302 is specifically meant for the CFO and the CEO to attest to fairness of financial statement and effectiveness of internal controls system

Explanation:

Section 404 is for the management to itemize internal control lapses in the course of the year.

It is not entirely out of context to  report such deficiency under section 302 but it must have first of all be  pointed out under section 404 of the SOX act

Since SOX act is mostly  rules-based approach to corporate governance framework, it is expected that its provisions be adhered to strictly.

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