This bill modifies the auditor independence standards required by the Public Company Accounting Oversight Board and the Securities and Exchange Commission. Specifically, an issuer that is a public company or has filed to become a public company must comply with certain auditor independence standards regarding audits that occurred in the fiscal year prior to the company going public.
To require auditor independence standards of the Public Company 
 Accounting Oversight Board and the Securities and Exchange Commission 
applicable to past audits of a company occurring before it was a public 
    company to treat an auditor as independent if the auditor meets 
      established professional standards, 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. AUDITOR INDEPENDENCE FOR CERTAIN PAST AUDITS OCCURRING 
              BEFORE AN ISSUER IS A PUBLIC COMPANY.

    (a) Auditor Independence Standards of the Public Company Accounting 
Oversight Board.--Section 103 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7213) is amended by adding at the end the following:
    ``(e) Auditor Independence for Certain Past Audits Occurring Before 
an Issuer Is a Public Company.--With respect to an issuer that is a 
public company or an issuer that has filed a registration statement to 
become a public company, the auditor independence rules established by 
the Board with respect to audits occurring before the last fiscal year 
of the issuer completed before the issuer filed a registration 
statement to become a public company shall treat an auditor as 
independent if--
            ``(1) the auditor is independent under standards 
        established by the American Institute of Certified Public 
        Accountants applicable to certified public accountants in 
        United States; or
            ``(2) with respect to a foreign issuer, the auditor is 
        independent under comparable standards applicable to certified 
        public accountants in the issuer's home country.''.
    (b) Auditor Independence Standards of the Securities and Exchange 
Commission.--Section 10A of the Securities Exchange Act of 1934 (15 
U.S.C. 78j-1) is amended by adding at the end the following:
    ``(n) Auditor Independence for Certain Past Audits Occurring Before 
an Issuer Is a Public Company.--With respect to an issuer that is a 
public company or an issuer that has filed a registration statement to 
become a public company, the auditor independence rules established by 
the Commission under the securities laws with respect to audits 
occurring before the last fiscal year of the issuer completed before 
the issuer filed a registration statement to become a public company 
shall treat an auditor as independent if--
            ``(1) the auditor is independent under standards 
        established by the American Institute of Certified Public 
        Accountants applicable to certified public accountants in 
        United States; or
            ``(2) with respect to a foreign issuer, the auditor is 
        independent under comparable standards applicable to certified 
        public accountants in the issuer's home country.''.
                                 <all>
To require auditor independence standards of the Public Company Accounting Oversight Board and the Securities and Exchange Commission applicable to past audits of a company occurring before it was a public company to treat an auditor as independent if the auditor meets established professional standards, and for other purposes.
To require auditor independence standards of the Public Company Accounting Oversight Board and the Securities and Exchange Commission applicable to past audits of a company occurring before it was a public company to treat an auditor as independent if the auditor meets established professional standards, and for other purposes.
Official Titles - House of Representatives
Official Title as Introduced
To require auditor independence standards of the Public Company Accounting Oversight Board and the Securities and Exchange Commission applicable to past audits of a company occurring before it was a public company to treat an auditor as independent if the auditor meets established professional standards, and for other purposes.
Rep. McHenry, Patrick T.