DESCRIBE THE REQUIREMENTS FOR INTERNAL CONTROLS IN SOX Sox requires the management of public companies to implement an adequate system of internal controls over their financial reporting process. This includes controls over the transaction processing system that feeds data into the financial information system (302 and 404). The primary objectives of internal control include: protecting company assets, ensuring the accuracy and reliability of records and accounting information, supporting the efficiency of company operations, measuring compliance with policies and procedures prescribed by management. In Section 302, the CEO and CFO must personally certify that financial reports are accurate and complete. They must also evaluate and report on the effectiveness of internal controls over financial reporting. This section clearly places responsibility for the accuracy of financial information at the highest level of company management. CEOs and CFOs now face the risk of criminal fraud.