KPMG has announced the establishment of the 404 Institute, an open forum designed to inspire the exchange of ideas and the development of research, leading practices, and a range of activities related to meeting the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. Section 404 of the Act calls for companies to meet key requirements for their internal financial reporting controls by November 2004.
"Sarbanes-Oxley represents among the most significant changes to financial reporting since the Securities Exchange Act of 1934, and Corporate America is investing hundreds of millions of dollars on Section 404 compliance," says Timothy P. Flynn, vice chair of KPMG's Audit and Risk Advisory Services. "The 404 Institute will create forums to help organizations leverage their current and future investments in internal controls, ultimately driving operating efficiencies and enhancing the transparency of financial reporting."
"These new open forums offer a platform for organizations and shareholders to learn about the 404 journey, share leading practices, and candidly discuss ways to address the evolution of effective internal controls," says Flynn. "We're inviting all parties with a stake in the integrity of the financial reporting process to become active participants in the dialogue, with an eye toward developing white papers, case studies, and important academic and professional research about Section 404."