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Sarbanes Oxley
Act |
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TITLE
VII—STUDIES AND REPORTS
SEC. 701. GAO
STUDY AND REPORT REGARDING CONSOLIDATION OF
PUBLIC
ACCOUNTING FIRMS.
(a) STUDY REQUIRED.—The
Comptroller General of the United
States shall
conduct a study—
(1) to
identify—
(A) the
factors that have led to the consolidation of
public
accounting firms since 1989 and the consequent
reduction in
the number of firms capable of providing audit
services to
large national and multi-national business
organizations
that are subject to the securities laws;
(B) the
present and future impact of the condition
described in
subparagraph (A) on capital formation and
securities
markets, both domestic and international; and
(C) solutions
to any problems identified under subparagraph
(B),
including ways to increase competition and the
number of
firms capable of providing audit services to
large
national and multinational business
organizations
that are
subject to the securities laws;
(2) of the
problems, if any, faced by business
organizations
that have
resulted from limited competition among public
accounting
firms, including—
(A) higher
costs;
(B) lower
quality of services;
(C)
impairment of auditor independence; or
(D) lack of
choice; and
(3) whether
and to what extent Federal or State
regulations
impede
competition among public accounting firms.
(b) CONSULTATION.—In
planning and conducting the study
under this
section, the Comptroller General shall consult
with—
(1) the
Commission;
(2) the
regulatory agencies that perform functions
similar
to the
Commission within the other member countries
of the
Group of
Seven Industrialized Nations;
(3) the
Department of Justice; and
(4) any other
public or private sector organization that
the
Comptroller General considers appropriate.
(c) REPORT REQUIRED.—Not
later than 1 year after the date
of enactment
of this Act, the Comptroller General shall
submit
a report on
the results of the study required by this
section to
the Committee
on Banking, Housing, and Urban Affairs of the
Senate and
the Committee on Financial Services of the
House
of
Representatives.
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