Sarbanes Oxley Act Section 201

 

TITLE II—AUDITOR INDEPENDENCE
 
SEC. 201. SERVICES OUTSIDE THE SCOPE OF PRACTICE OF AUDITORS.
 
(a) PROHIBITED ACTIVITIES.—Section 10A of the Securities
Exchange Act of 1934 (15 U.S.C. 78j–1) is amended by adding
at the end the following:
 
‘‘(g) PROHIBITED ACTIVITIES.—Except as provided in subsection
(h), it shall be unlawful for a registered public accounting firm
(and any associated person of that firm, to the extent determined
appropriate by the Commission) that performs for any issuer any
audit required by this title or the rules of the Commission under
this title or, beginning 180 days after the date of commencement
of the operations of the Public Company Accounting Oversight
Board established under section 101 of the Sarbanes-Oxley Act
of 2002 (in this section referred to as the ‘Board’), the rules of
the Board, to provide to that issuer, contemporaneously with the
audit, any non-audit service, including—
 
‘‘(1) bookkeeping or other services related to the accounting
records or financial statements of the audit client;
 
‘‘(2) financial information systems design and implementation;
 
‘‘(3) appraisal or valuation services, fairness opinions, or
contribution-in-kind reports;
 
‘‘(4) actuarial services;
 
‘‘(5) internal audit outsourcing services;
 
‘‘(6) management functions or human resources;
 
‘‘(7) broker or dealer, investment adviser, or investment
banking services;
 
‘‘(8) legal services and expert services unrelated to the
audit; and
 
‘‘(9) any other service that the Board determines, by regulation,
is impermissible.
 
‘‘(h) PREAPPROVAL REQUIRED FOR NON-AUDIT SERVICES.—
A registered public accounting firm may engage in any non-audit service,
including tax services, that is not described in any of paragraphs
(1) through (9) of subsection (g) for an audit client, only if the
activity is approved in advance by the audit committee of the
issuer, in accordance with subsection (i).’’.
 
(b) EXEMPTION AUTHORITY.—The Board may, on a case by case basis, exempt any person, issuer, public accounting firm, or transaction from the prohibition on the provision of services under section 10A(g) of the Securities
Exchange Act of 1934 (as added by this section),
to the extent that such exemption is necessary
or appropriate in the public interest and is consistent with the
protection of investors, and subject to review by the Commission
in the same manner as for rules of the Board under section 107.

 

 

   

 

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