Bill > HR4616

This bill amends the Sarbanes-Oxley Act of 2002 to address potential risks from foreign auditing firms operating in countries that may compromise audit independence and national security. The bill introduces new definitions for "compromised auditors" and "covered countries," which include nations identified as national security threats or those with significant potential to influence audit objectivity. A "compromised auditor" is defined as an accounting firm branch or subsidiary that is subject to the jurisdiction of a covered country, controlled by such a country, or has arrangements that could compromise its independence. The legislation establishes new trading prohibitions for covered issuers who retain compromised auditors, potentially restricting their ability to trade if they use auditors from these high-risk jurisdictions. Additionally, the bill modifies rules around public hearings related to auditing, generally keeping such hearings private unless a compromised auditor is involved or the Board determines there is good cause for a public hearing. These provisions aim to strengthen oversight of international auditing practices and protect the integrity of financial reporting for publicly traded companies.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4616/all-info