The Sarbanes-Oxley Act of 2002, Section 404 Management Assessment of Internal Controls has produced the most costly and comprehensive effect on management since RICO. Management is required to maintain internal controls which produce accurate and reliable financial statements. External auditors are required to audit management’s assertion of internal controls as well as the financial statements. The audit committee of the board of directors is ultimately responsible for internal controls and providing a system so employees may report violations of internal controls.