§ 7216. Foreign public accounting firms

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 2002

   Sarbanes-Oxley Act of 2002

   Pub. L. 107–204 title I § 106 · 116 Stat. 745

   Enacted · 15 U.S.C. § 7216

   Pub. L. 107–204, title I, § 106, July 30, 2002, 116 Stat. 764

   Source evidence

   Code source credit
   Pub. L. 107–204, title I, § 106, July 30, 2002, 116 Stat. 764

   Enacted provision · exact public law section
   SEC. 106. FOREIGN PUBLIC ACCOUNTING FIRMS. (a) Applicability to Certain Foreign Firms.— (1) In general.— Any foreign public accounting firm that prepares or furnishes an audit report with respect to any issuer, shall be subject to this Act and the rules of the Board and the Commission issued under this Act, in the same manner and to the same extent as a public accounting firm that is organized and operates under the laws of the United States or any State, except that registration pursuant to section 102 shall not by itself provide a basis for subjecting such a foreign public accounting firm to the jurisdiction of the Federal or State courts, other than with respect to controversies between such firms and the Board. (2) Board authority.— The Board may, by rule, determine that a foreign public accounting firm (or a class of such firms) that does not issue audit reports nonetheless plays such a substantial role in the preparation and furnishing of such reports for particular issuers, that it is necessary or appropriate, in light of the purposes of this Act and in the public interest or for the protection of investors, that such firm (or class of firms) should be treated as a public accounting firm (or firms) for purposes of registration under, and oversight by the Board in accordance with, this title. (b) Production of Audit Workpapers.— (1) Consent by foreign firms.— If a foreign public accounting firm issues an opinion or otherwise performs material services upon which a registered public accounting firm relies in issuing all or part of any audit report or any opinion contained in an audit report, that foreign public accounting firm shall be deemed to have consented— (A) to produce its audit workpapers for the Board or the Commission in connection with any investigation by either body with respect to that audit report; and (B) to be subject to the jurisdiction of the courts of the United States for purposes of enforcement of any request for production of such workpapers. (2) Consent by domestic firms.— A registered public accounting firm that relies upon the opinion of a foreign public accounting firm, as described in paragraph (1), shall be deemed— (A) to have consented to supplying the audit workpapers of that foreign public accounting firm in response to a request for production by the Board or the Commission; and (B) to have secured the agreement of that foreign public accounting firm to such production, as a condition of its reliance on the opinion of that foreign public accounting firm. (c) Exemption Authority.— The Commission, and the Board, subject to the approval of the Commission, may, by rule, regulation, or order, and as the Commission (or Board) determines necessary or appropriate in the public interest or for the protection of investors, either unconditionally or upon specified terms and conditions exempt any foreign public accounting firm, or any class of such firms, from any provision of this Act or the rules of the Board or the Commission issued under this Act. (d) Definition.— In this section, the term “foreign public accounting firm” means a public accounting firm that is organized and operates under the laws of a foreign government or political subdivision thereof.

2. 2010

   Investor Protection and Securities Reform Act of 2010

   Pub. L. 111–203 § 982(g)(1) · 124 Stat. 1376

   Substituted · 15 U.S.C. § 7216(a)(1)

   Pub. L. 111–203, § 982(g)(1), substituted “issuer, broker, or dealer” for “issuer”

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 111–203, § 982(g)(1), substituted “issuer, broker, or dealer” for “issuer”.

   Enacted provision · exact public law section
   (1) in paragraph (1), by striking “issuer” and inserting “issuer, broker, or dealer”; and

   Effective date note
   Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

3. 2010

   Investor Protection and Securities Reform Act of 2010

   Pub. L. 111–203 § 982(g)(2) · 124 Stat. 1376

   Substituted · 15 U.S.C. § 7216(a)(2)

   Pub. L. 111–203, § 982(g)(2), substituted “issuers, brokers, or dealers” for “issuers”

   Source evidence

   Code amendment note
   Subsec. (a)(2). Pub. L. 111–203, § 982(g)(2), substituted “issuers, brokers, or dealers” for “issuers”.

   Enacted provision · exact public law section
   (2) in paragraph (2), by striking “issuers” and inserting “issuers, brokers, or dealers”.

   Effective date note
   Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

4. 2010

   Investor Protection and Securities Reform Act of 2010

   Pub. L. 111–203 § 929J(1) · 124 Stat. 1376

   1. Added · 15 U.S.C. § 7216(b)

      Pub. L. 111–203, § 929J(1), added subsec. (b)

   2. Struck · 15 U.S.C. § 7216(b)

      Pub. L. 111–203, § 929J(1), struck out former subsec. (b) which related to deemed consent to production of audit workpapers by foreign and domestic firms

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 111–203, § 929J(1), added subsec. (b) and struck out former subsec. (b) which related to deemed consent to production of audit workpapers by foreign and domestic firms.

   Enacted provision · exact public law section
   (1) by striking subsection (b) and inserting the following: “(b) Production of Documents.— “(1) Production by foreign firms.— If a foreign public accounting firm performs material services upon which a registered public accounting firm relies in the conduct of an audit or interim review, issues an audit report, performs audit work, or conducts interim reviews, the foreign public accounting firm shall— “(A) produce the audit work papers of the foreign public accounting firm and all other documents of the firm related to any such audit work or interim review to the Commission or the Board, upon request of the Commission or the Board; and “(B) be subject to the jurisdiction of the courts of the United States for purposes of enforcement of any request for such documents. “(2) Other production.— Any registered public accounting firm that relies, in whole or in part, on the work of a foreign public accounting firm in issuing an audit report, performing audit work, or conducting an interim review, shall— “(A) produce the audit work papers of the foreign public accounting firm and all other documents related to any such work in response to a request for production by the Commission or the Board; and “(B) secure the agreement of any foreign public accounting firm to such production, as a condition of the reliance by the registered public accounting firm on the work of that foreign public accounting firm.” ;

   Effective date note
   Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

5. 2010

   Investor Protection and Securities Reform Act of 2010

   Pub. L. 111–203 § 929J(2) · 124 Stat. 1376

   1. Added · 15 U.S.C. § 7216(d)(g)

      Pub. L. 111–203, § 929J(2), (3), added subsecs. (d) to (f)

   2. Redesignated · 15 U.S.C. § 7216(d)(g)

      Pub. L. 111–203, § 929J(2), (3), redesignated former subsec. (d) as (g)

   Source evidence

   Code amendment note
   Subsecs. (d) to (g). Pub. L. 111–203, § 929J(2), (3), added subsecs. (d) to (f) and redesignated former subsec. (d) as (g).

   Enacted provision · exact public law section
   (2) by redesignating subsection (d) as subsection (g); and

   Effective date note
   Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

7 of 7 references resolved to an enrolled provision