Building an Effective Internal Audit Function: Learning from SOX Section 404 Reports (Sarbanes-Oxley Act of 2002 ‪)‬

Abstract In the wake of the major accounting scandals, internal auditing has emerged as a powerful force in promoting effective controls, risk management, and governance in U.S. companies. This article highlights recent internal audit-related problems that were revealed in SOX Section 404 reports and offers specific recommendations for building an effective, value-adding internal audit function.