Public Company Accounting Reform and Investor Protection Act of 2002 (S. 2673 (107th)) — United States

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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Timeline

18 June 2002
Reported
Committee on Banking, Housing, and Urban Affairs ordered to be reported an original measure.
Source: Committee
25 June 2002
Calendars
Placed on Senate Legislative Calendar under General Orders. Calendar No. 442.
Source: Calendars
25 June 2002
Reported
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Sarbanes. Without written report.
Source: Committee
25 June 2002
Reported
Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Sarbanes. Without written report.
Source: Committee
25 June 2002
Introduced
Introduced in Senate
Source: IntroReferral
3 July 2002
Floor
By Senator Sarbanes from Committee on Banking, Housing, and Urban Affairs filed written report under authority of the order of the Senate of 06/26/2002. Report No. 107-205. Additional views filed.
Source: Floor
3 July 2002
Committee
By Senator Sarbanes from Committee on Banking, Housing, and Urban Affairs filed written report under authority of the order of the Senate of 06/26/2002. Report No. 107-205. Additional views filed.
Source: Committee
8 July 2002
Floor
Measure laid before Senate. (consideration: CR S6327-6347)
Source: Floor
9 July 2002
Floor
Considered by Senate. (consideration: CR S6436-6444, S6491-6496)
Source: Floor
10 July 2002
Floor
Considered by Senate. (consideration: CR S6524-6560)
Source: Floor
11 July 2002
Floor
Considered by Senate. (consideration: CR S6603-6616, S6617-6633, S6636-6643)
Source: Floor
12 July 2002
Floor
Considered by Senate. (consideration: CR S6683-6685, S6687-6700)
Source: Floor
15 July 2002
Floor
Considered by Senate. (consideration: CR S6734-6779)
Source: Floor
15 July 2002
Vote
Passed/agreed to in Senate: Passed Senate with amendments by Yea-Nay Vote. 97 - 0. Record Vote Number: 176.
Source: Floor

Votes

15 July 2002 · Bill Passed · On Passage of the Bill S. 2673 · Bill Passed · Official source

Yes 97 · No 0 · Abstain — · Absent/not voting 3

Showing the first 4 recorded positions. Vote totals above are complete.

Versions

Placed on Calendar Senate · 25 June 2002 · Download file

Documents

5 official files

Placed on Calendar Senate (text)

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Passed Senate amended
summary · EN · 15 July 2002
Open at official source
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Placed on Calendar Senate (text)
Placed on Calendar Senate · EN · 25 June 2002
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Placed on Calendar Senate (PDF)
Placed on Calendar Senate · EN · 25 June 2002
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Reported to Senate without amendment
summary · EN · 25 June 2002
Open at official source
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Introduced in Senate
summary · EN · 25 June 2002
Open at official source
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Related records

related to → Public Company Accounting Reform and Investor Protection Act of 2002
related to → Sarbanes-Oxley Act of 2002
amends ← SAMDT 4182
amends ← SAMDT 4179
amends ← SAMDT 4192
amends ← SAMDT 4194
amends ← SAMDT 4202
amends ← SAMDT 4199
amends ← SAMDT 4178
amends ← SAMDT 4212

Showing 10 of 124 related records.

Sources

PoliticalRepo is an index and interpretation layer, not the authoritative legal source.

Official source: https://www.congress.gov/bill/107th-congress/senate-bill/2673
Open data entity: https://api.congress.gov/v3/bill/107/s/2673
us · 107-s-2673 · source updated 7 April 2025

Public Company Accounting Reform and Investor Protection Act of 2002