Bill > S2382

This bill amends the Sarbanes-Oxley Act of 2002 to introduce new provisions regarding foreign auditing firms and their potential national security risks. The bill defines a "compromised auditor" as an independent branch or office of a registered public accounting firm that is subject to the jurisdiction of a "covered country" - which includes nations identified as national security threats in the Annual Threat Assessment or other specified national security designations. The legislation establishes that if a company headquartered in a covered country retains a compromised auditor to prepare an audit report, the company will be subject to trading prohibitions. Additionally, the bill modifies rules about public hearings, stipulating that hearings involving compromised auditors or covered issuers will generally not be public, except under specific circumstances approved by the Board. These changes aim to enhance transparency and protect against potential foreign interference in financial auditing processes, particularly for companies from countries deemed to pose national security risks.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2382/all-info