IMPACT OF SOX SECTION 404 ON THE AUTOMOBILE INDUSTRY

Adverse SOX Section 404 Reports

For Companies with Years Ended in 2006

As of July 6, 2007

The following is a copy of the seven adverse reports that were issued from companies in the Automobile industry with years ended in 2006. These were all of the accelerated filers in the Automobile industry with adverse Sarbanes-Oxley Section 404 management self assessments. This information was gathered using the online research tool called Audit Analytics an Ives Group, Inc company.

The following is a summary of the material internal control weaknesses reported in the seven adverse SOX Section 404 Self Assessments:

autmotive2006_1

The following is a summary of the material accounting weaknesses reported in the seven adverse Section 404 Self Assessments. SOX Section 404 is not just about internal control issues, but also about misapplication of financial accounting and reporting issues:

autmotive2006_1

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