Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) directs the SEC to adopt rules requiring that the annual reports of publicly-held companies contain information regarding the internal control structure and procedures for financial reporting.
Conduct Internet research to locate the most recent annual report for a publicly-held company of your choice. Hint: This information is generally found in the Investor Relations section of the company's website.
Prepare a brief essay that answers the following questions with respect to the company's internal controls:
Has the company taken steps to comply with SOX? If so, explain what the company has done. If not, examine whether the company has made provisions to comply.
Has the company established an audit committee? If so, are they part of the Board of Directors? Identify the members of the audit committee. What are the responsibilities of the committee?