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[mack]

The Sarbanes-Oxley Act itself is organized into eleven sections, but section 404 of SOX is the part of the Act that is normally referred to as SOX data compliance by IT departments and vendors.This section requires the documentation and evaluation of both the design and the operational effectiveness of internal controls for financial reporting. This must be performed on an annual basis, and also requires the attestation of external auditors.

Financial controls are the processes put in place by the company's board of directors to provide 'reasonable
assurance' of the reliability of the transactions that contribute to financial statements. Financial controls typically include measures such as: approval; verification; reconciliation; review; security and segregation of duties. A report of internal control effectiveness must be included in the company's annual report, accompanied by the external auditor's independent assessment.

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