SOX 404
SOX 404 (also known as Sarbanes-Oxley Section 404) is a key part of business rules that public companies must follow. It focuses on making sure a company's financial reporting is accurate and reliable. Think of it as a safety check system that helps prevent financial mistakes and fraud. Companies need people who understand these rules to help set up and monitor financial controls, similar to having a security system for money-related activities. This is particularly important for accountants, auditors, and compliance professionals who work with public companies in the United States.
Examples in Resumes
Led SOX 404 compliance initiatives for a Fortune 500 company
Implemented SOX 404 controls and documentation processes
Conducted SOX testing and remediation of financial controls
Managed Sarbanes-Oxley Section 404 audit preparations
Typical job title: "SOX Compliance Specialists"
Also try searching for:
Where to Find SOX Compliance Specialists
Professional Associations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How would you design a SOX 404 compliance program from scratch?
Expected Answer: A senior professional should explain the process of identifying key financial processes, establishing control documentation, implementing testing procedures, and creating reporting mechanisms. They should mention stakeholder involvement and training programs.
Q: How do you handle disagreements with external auditors about control effectiveness?
Expected Answer: Should demonstrate diplomatic approach to resolving differences, ability to present evidence supporting control effectiveness, and experience in negotiating practical solutions while maintaining compliance requirements.
Mid Level Questions
Q: What are the key components of a good internal control?
Expected Answer: Should describe elements like clear documentation, appropriate segregation of duties, regular monitoring, and how these components work together to prevent or detect errors.
Q: How do you document and test internal controls?
Expected Answer: Should explain the process of writing control descriptions, gathering evidence, performing tests, and documenting results in a clear, organized manner.
Junior Level Questions
Q: What is the purpose of SOX 404?
Expected Answer: Should explain that SOX 404 helps ensure accurate financial reporting by requiring companies to have and test internal controls over financial reporting.
Q: What is a control deficiency?
Expected Answer: Should be able to explain in simple terms that a control deficiency is when a process meant to prevent or detect financial errors isn't working properly.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of internal controls
- Documentation of control processes
- Assisting with control testing
- Basic financial process knowledge
Mid (2-5 years)
- Independent control testing
- Deficiency evaluation
- Process improvement recommendations
- Coordination with external auditors
Senior (5+ years)
- Program oversight and design
- Risk assessment
- External auditor relationship management
- Training and team leadership
Red Flags to Watch For
- No understanding of basic accounting processes
- Lack of attention to detail in documentation
- Poor communication skills
- No experience with control testing or evaluation
- Unfamiliarity with audit terminology and processes
Related Terms
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