Section 302 makes the chief executive and chief financial officer personally certify each periodic report; Section 404 requires management to assess internal control over financial reporting, with an auditor attestation for larger filers. Section 906 adds criminal liability for knowingly false certification.
It also created the PCAOB to inspect audit firms, banned most consulting services to audit clients, required audit committee independence, and lengthened whistleblower protections.
For traders the practical residue is in filings. A disclosed material weakness in internal controls, a late form-10-k filing, or an auditor change reported on form-8-k are the small signals that often precede restatements.
Related: form-10-k, form-8-k, securities-exchange-act-1934, sec-comment-letter, dodd-frank-act