Sarbanes-Oxley Act Essay

PUBLIC LAW 107–204—JULY 30, 2002

116 STAT. 745

Public Law 107–204
107th Congress
An Act
To protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘SarbanesOxley Act of 2002’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act is as follows:

July 30, 2002
[H.R. 3763]
Sarbanes-Oxley
Act of 2002.
Corporate
responsibility.
15 USC 7201 note. Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Commission
905. Amendment to sentencing guidelines relating to certain white-collar offenses.
Sec. 906. Corporate responsibility for financial reports.
Sec.
Sec.
Sec.
Sec.

TITLE X—CORPORATE TAX RETURNS
Sec. 1001. Sense of the Senate regarding the signing of corporate tax returns by chief executive officers.
TITLE XI—CORPORATE FRAUD AND ACCOUNTABILITY
Sec. 1101. Short title.
Sec. 1102. Tampering with a record or otherwise impeding an official proceeding.
Sec. 1103. Temporary freeze authority for the Securities and Exchange Commission.
Sec. 1104. Amendment to the Federal Sentencing Guidelines.
Sec. 1105. Authority of the Commission to prohibit persons from serving as officers or directors.
Sec. 1106. Increased criminal penalties under Securities Exchange Act of 1934.
Sec. 1107. Retaliation against informants.
15 USC 7201.

SEC. 2. DEFINITIONS.

(a) IN GENERAL.—In this Act, the following definitions shall apply: (1) APPROPRIATE STATE REGULATORY AUTHORITY.—The term
‘‘appropriate State regulatory authority’’ means the State agency or other authority responsible for the licensure or other regulation of the practice of accounting in the State or States

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PUBLIC LAW 107–204—JULY 30, 2002

(B) not less frequently than once every 3 years with respect to each registered public accounting firm that regularly provides audit reports for 100 or fewer issuers.
(2) ADJUSTMENTS TO SCHEDULES.—The Board may, by rule, adjust the inspection schedules set under paragraph (1) if the
Board finds that different inspection schedules are consistent with the purposes of this Act, the public interest, and the protection of investors. The Board may conduct special inspections at the request of the Commission or upon its own motion.
(c) PROCEDURES.—The Board shall, in each inspection under this section, and in accordance with its rules for such inspections—
(1) identify any act or practice or omission to act by the registered public accounting firm, or by any associated person thereof, revealed by such inspection that may be in violation of this Act, the rules of the Board, the rules of the Commission, the firm’s own quality control policies, or professional standards;
(2) report any such act, practice, or omission, if appropriate, to the Commission and each appropriate State regulatory
authority;