Public Company Accounting Reform and Investor Protection Act of 2002

Summary

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.

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3 official files

• Introduced in House (text)

  Introduced in House · EN · 9 July 2002

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• Introduced in House (PDF)

  Introduced in House · EN · 9 July 2002

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• Introduced in House

  summary · EN · 9 July 2002

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