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HR 3970 107th Congress House

Truth and Accountability in Accounting Act of 2002

Official title: To improve the setting of accounting standards by the Financial Accounting Standards Board, to provide sound and uniform accounting and financial reporting for… Show full official titleShow less

Official title: To improve the setting of accounting standards by the Financial Accounting Standards Board, to provide sound and uniform accounting and financial reporting for public utilities, to clarify the responsibility of issuers for the transparency and honesty of their financial statements and reports, and to enhance the governance of the accounting profession.

Introduced: March 14, 2002 See on congress.gov
Finance and Financial Sector AccountingAccounting and auditingAccounting and financial statementsAdministrative fees
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Administrative procedureAdministrative remediesAuditingAuditing and auditorsBusiness ethicsBusiness recordsChief executive officersChief financial officersCommerceConfidential communicationsConflict of interestsCongressCongressional investigationsCongressional reporting requirementsConsultantsCorporate collapseCorporate financeCorporate governanceCorporate managementCorporation directorsDepartment of EnergyDerivative securitiesEconomics and Public FinanceElectric utilitiesEnergyEnergy industriesExecutive reorganizationFederal Energy Regulatory CommissionFeesFinancial statementsFines (Penalties)Foreign Trade and International FinanceForeign corporationsGovernment Operations and PoliticsGovernment paperworkGovernment publicityGovernmental investigationsIndependent regulatory commissionsInformation disclosure (Securities law)InjunctionsInsurance companiesInternetLawLegislationLiability insuranceLicensesProfessional ethicsQuality controlScience, Technology, CommunicationsSecurities and Exchange CommissionSecurities regulationStandardsStockholdersTax consultantsTaxationTelephone
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This bill died when the 107th Congress ended
It never became law before the 107th Congress (2001–2002) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 4 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 15, 2002
Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
Mar 26, 2002
Referred to the Subcommittee on Commerce, Trade and Consumer Protection, for a period to be subsequently determined by the Chairman.
Mar 14, 2002
Referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Mar 14, 2002
Introduced in House
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 Latest action April 15, 2002

Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

 Plain-English summary Congressional Research Service
Truth and Accountability in Accounting Act of 2002 - Directs: (1) the Securities and Exchange Commission (SEC) to review annually the impact of unresolved accounting standards issues on the clarity, transparency, and quality of financial reporting by publicly traded companies; (2) the Financial Accounting Standards Board (FASB) to respond to such report; and (3) the General Accounting Office (GAO) to evaluate such review mechanisms.

Amends the Federal Power Act to instruct the Federal Energy Regulatory Commission (FERC) to promulgate criteria for waivers and exemptions pertaining to: (1) securities issuance and assumption of liabilities; (2) accounts and records; (3) reports and obstructing filing reports or keeping accounts; and (4) officials dealing in securities.

Places a limited moratorium on certain waivers and exemptions.

Instructs FERC to summarize annually for certain congressional committees the financial and operating condition of power marketers, including the key trends or issues affecting the capital structure and financial condition of such marketers, and the use of leverage, derivatives transactions, and other material information.

Amends the Securities Exchange Act of 1934 to mandate certification of financial statements by corporate officers.

Directs the Securities and Exchange Commission (SEC) to establish an Independent National Board of Accountancy (INBA) to exercise oversight and information collection jurisdiction over accounting and auditing firms. Grants the INBA enforcement authority, and establishes civil money penalties for specified offenses.

Vests the SEC with responsibility for promulgating and interpreting auditor independence rules. Directs INBA to seek to promote auditor independence. Places INBA under SEC oversight.

Subjects certain foreign public accounting firms to the requirements of this Act.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 4
 Cosponsors 2
All 2 Democratic 2
D
DeGette, Diana
Colorado · Mar 14, 2002
 D
Markey, Edward J.
Massachusetts · Mar 14, 2002
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 3970: Truth and Accountability in Accounting Act of 2002. 107th Congress. Open America. https://openamerica.io/bill/107-HR-3970/
MLA
"H.R. 3970: Truth and Accountability in Accounting Act of 2002." 107th Congress, 2026, Open America, https://openamerica.io/bill/107-HR-3970/.
Bluebook (legal)
H.R. 3970, 107th Cong. (2026), https://openamerica.io/bill/107-HR-3970/.
Markdown link
[H.R. 3970: Truth and Accountability in Accounting Act of 2002](https://openamerica.io/bill/107-HR-3970/)
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