The Sarbanes-Oxley Act of 2002 was enacted in response to major corporate and accounting scandals to protect investors. Section 404 of the Act requires companies to assess the effectiveness of their internal controls over financial reporting and disclose any material weaknesses found. It is one of the most costly aspects of the Act for companies to implement. Section 404 requires management to produce an annual internal control report evaluating the company's controls and the auditor to attest to management's assessment.