The Trusted Foreign Auditing Act amends federal securities law to address concerns about auditors operating under the control or influence of foreign governments deemed threats to U.S. national security. The bill creates a new category called "compromised auditors"—accounting firm branches or offices subject to control by covered countries (those identified as national security threats in intelligence reports or by the Defense Department)—and requires disclosure of when U.S. public companies use such auditors. Companies headquartered in countries of concern that hire compromised auditors would face trading prohibitions on U.S. stock exchanges. The legislation also modifies confidentiality rules for Securities and Exchange Commission hearings involving compromised auditors, allowing them to be public unless the Board determines otherwise. The bill affects U.S. public companies, foreign-based accounting firms, and the stock market oversight system, but contains no specific funding allocations or implementation timelines.
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