This bill amends the Sarbanes-Oxley Act to increase oversight of foreign auditing firms that may pose national security risks. Specifically, it requires the disclosure and monitoring of "compromised auditors"—accounting firm branches or subsidiaries subject to control or influence by foreign governments identified as national security threats by U.S. intelligence officials. The legislation defines "covered countries" as those listed in the Director of National Intelligence's annual threat assessment report or designated as covered nations under federal defense law. If a company headquartered in a covered country uses a compromised auditor, the bill triggers a trading prohibition on that company's securities. The bill also changes rules for public hearings before the accounting oversight board—making hearings public only when a compromised auditor is involved or when the board finds good cause. No specific funding or implementation timeline is mentioned in the legislative text.
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