S.1767 - Auditor Independence and Tax Shelters Act108th Congress (2003-2004)
|Sponsor:||Sen. Levin, Carl [D-MI] (Introduced 10/21/2003)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||10/21/2003 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.|
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Subject — Policy Area:
- Finance and Financial Sector
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Summary: S.1767 — 108th Congress (2003-2004)All Bill Information (Except Text)
Introduced in Senate (10/21/2003)
Auditor Independence and Tax Shelters Act - Amends the Securities Exchange Act of 1934 to prohibit a registered public accounting firm from providing tax shelter services to their audit clients.
Defines tax shelter services as services provided by a registered public accounting firm (or by an associated person of that firm) to an issuer, or an officer or director of an issuer, to design, organize, promote, assist, or execute any investment, entity, plan, arrangement, or transaction for which a significant purpose is the avoidance or evasion of Federal income tax by such issuer, or an officer or director of such issuer, whether acting as a direct or indirect participant, and for which such firm may receive fees in excess of $100,000 in the aggregate.
Requires an audit committee, as a prerequisite to its approval of a non-audit service, to determine whether a reasonable likelihood exists that the service would impair the independence of the registered public accounting firm by resulting in the firm's: (1) auditing its own work for the issuer; (2) performing a management function for the issuer; (3) advocating in a public forum for the issuer; or (4) promoting the stock or other financial interest of the issuer.
Prohibits the audit committee from providing advance approval of such service if it determines that such a reasonable likelihood exists.