H.R.3617 - Accountability for Accountants Act of 2002107th Congress (2001-2002)
|Sponsor:||Rep. Markey, Edward J. [D-MA-7] (Introduced 01/23/2002)|
|Committees:||House - Financial Services|
|Latest Action:||02/11/2002 Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises. (All Actions)|
This bill has the status Introduced
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Summary: H.R.3617 — 107th Congress (2001-2002)All Bill Information (Except Text)
Accountability for Accountants Act of 2002 - Amends the Securities Exchange Act of 1934 to extend joint and several liability to an auditor of financial statements: (1) who has been found by a jury to have failed to detect and report illegal acts of the issuer of securities that are the subject of a class action; (2) who has performed non-audit functions for such issuer during the time within which an alleged violation of securities occurred; or (3) the issuer of such securities is insolvent.
Introduced in House (01/23/2002)
Declares stay of discovery procedures inapplicable in any private action against such auditor.
Amends the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940 to extend liability to persons who aid or abet violations of such Act.
Amends the Securities Exchange Act of 1934 to mandate maintenance of audit records of an issuer of securities and to impose criminal sanctions for non-compliance.
Requires an accountant/auditor of a securities issuer to report to the Securities and Exchange Commission on its decision to: (1) divest itself of interests in non-audit businesses in light of the inherent potential conflicts of interest in providing both audit and non-audit services to an issuer; or (2) cease providing non-audit services to companies whose financial statements it audits.
Mandates preservation of records during shareholder litigation.