H.R. 5070 (107th): Public Company Accounting Reform and Investor Protection Act of 2002

Introduced:
Jul 09, 2002 (107th Congress, 2001–2002)
Status:
Died (Referred to Committee) in a previous session of Congress
See Instead:

S. 2673 (same title)
Passed Senate — Jul 15, 2002

This bill was introduced on July 9, 2002, in a previous session of Congress, but was not enacted.

Introduced
Jul 09, 2002
 
Sponsor
John LaFalce
Representative for New York's 29th congressional district
Party
Democrat
Text
Read Text »
Last Updated
Jul 09, 2002
Length
116 pages
Related Bills
S. 2673 (identical)

Passed Senate
Last Action: Jul 15, 2002

H.R. 3763 (Related)
Sarbanes-Oxley Act of 2002

Signed by the President
Jul 30, 2002

 
Full Title

To improve quality and transparency in financial reporting and independent audits and accounting services for public companies, to create a Public Company Accounting Oversight Board, to enhance the standard setting process for accounting practices, to strengthen the independence of firms that audit public companies, to increase corporate responsibility and the usefulness of corporate financial disclosure, to protect the objectivity and independence of securities analysts, to improve Securities and Exchange Commission resources and oversight, and for other purposes.

Summary

No summaries available.

 
Cosponsors
6 cosponsors (6D) (show)
Committees

House Financial Services

Capital Markets and Government Sponsored Enterprises

The committee chair determines whether a bill will move past the committee stage.

 
Primary Source

THOMAS.gov (The Library of Congress)

GovTrack gets most information from THOMAS, which is updated generally one day after events occur. Activity since the last update may not be reflected here. Data comes via the congress project.

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Notes

H.R. stands for House of Representatives bill.

A bill must be passed by both the House and Senate in identical form and then be signed by the president to become law.

The bill’s title was written by its sponsor.

GovTrack’s Bill Summary

We don’t have a summary available yet.

Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.


7/9/2002--Introduced.
Public Company Accounting Reform and Investor Protection Act of 2002 - Establishes the Public Company Accounting Oversight Board to impose sanctions upon registered public accounting firms and their associated persons.
Authorizes sanctions for failure to supervise.Grants the Securities and Exchange Commission (SEC) oversight of the Board, including general modification and rescission of Board authority.Amends the Securities Act of 1933 to authorize the SEC to recognize, as "generally accepted" for purposes of the securities laws, accounting principles established by a standard setting body.Amends the Securities Exchange Act of 1934 to prohibit a public accounting firm from performing certain non-audit services contemporaneously with a mandatory audit.Mandates audit partner rotation on a five-year basis.Prohibits a public accounting firm from performing statutorily mandated audit services if its senior executives were employed by the issuer and participated in the audit of such issuer during the one-year period preceding the audit date.Vests the audit committee of an issuer with oversight authority over any public accounting firm performing audit services.Requires a chief executive officer and chief financial officer to:
(1) certify the veracity of mandatory financial statements; and
(2) forfeit certain bonuses and compensation received following an accounting restatement owing to noncompliance with securities laws.Prohibits insider trades during pension fund blackout periods.Mandates enhanced disclosure of:
(1) material off-balance sheet transactions and relationships;
(2) pro forma financial information that is not misleading, and that is reconciled with generally accepted accounting principles; and
(3) loans and loan guarantees made to senior executives.Reduces the mandatory period for disclosure of changes in ownership of securities or security-based swap agreements by certain principal stockholders.Mandates SEC rules governing analyst conflicts of interest.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.


No summary available.

House Democratic Caucus Summary

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