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H.R. 5070 107th Congress House

Public Company Accounting Reform and Investor Protection Act of 2002

Official title: To improve quality and transparency in financial reporting and independent audits and accounting services for public companies, to create a Public Company Acco… Show full official titleShow less

Official title: To improve quality and transparency in financial reporting and independent audits and accounting services for public companies, to create a Public Company Accounting Oversight Board, to enhance the standard setting process for accounting practices, to strengthen the independence of firms that audit public companies, to increase corporate responsibility and the usefulness of corporate financial disclosure, to protect the objectivity and independence of securities analysts, to improve Securities and Exchange Commission resources and oversight, and for other purposes.

Introduced: July 9, 2002 See on congress.gov
Finance and Financial Sector AccountingAccounting and auditingAccounting and financial statementsAdministrative fees
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Administrative procedureAdministrative remediesAuditingAuditing and auditorsAuthorizationBank examinationBrokersBusiness ethicsBusiness recordsChief executive officersChief financial officersCivil Rights and Liberties, Minority IssuesCivil actions and liabilityCommerceCompetitionConfidential communicationsConflict of interestsCongressCongressional investigationsCongressional reporting requirementsConsumer creditCorporate accountabilityCorporate collapseCorporate corruptionCorporate governanceCorporate mergersCorporation directorsCorporationsCredit unionsCrime and Law EnforcementCriminal investigationDisciplining of employeesEconomic impact statementsEconomics and Public FinanceEducationElectronic data interchangeExecutive compensationExecutivesFederal incorporationFinancial researchFinancial statementsFines (Penalties)Foreign Trade and International FinanceForeign corporationsFraudFreedom of informationFringe benefitsGovernment Operations and PoliticsGovernment paperworkGovernmental investigationsHigher educationIncorporationIndependent regulatory commissionsInformation disclosure (Securities law)InjunctionsInsider trading in securitiesInsurance companiesInternetInvestment advisersInvestment bankingInvestorsLabor and EmploymentLawLegal ethicsLicensesLoansManagementNegligenceNonprofit organizationsPartnershipsPenny stocksProfessional educationProfessional ethicsProfessional feesProfitProsecutionQuality controlRemoval of officialsSavings and loan associationsScholarshipsScience, Technology, CommunicationsSecurities and Exchange CommissionSecurities fraudSecurities industrySecurities regulationSocial WelfareStandardsStockholdersStocksSubpoenaSupervision of employeesTrusts and trusteesValuationWitnesses
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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 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Aug 19, 2002
Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
Jul 9, 2002
Referred to the House Committee on Financial Services.
Jul 9, 2002
Introduced in House
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 Latest action August 19, 2002

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

 Plain-English summary Congressional Research Service
Public Company Accounting Reform and Investor Protection Act of 2002 - Establishes the Public Company Accounting Oversight Board to impose sanctions upon registered public accounting firms and their associated persons. Authorizes sanctions for failure to supervise.

Grants the Securities and Exchange Commission (SEC) oversight of the Board, including general modification and rescission of Board authority.

Amends the Securities Act of 1933 to authorize the SEC to recognize, as "generally accepted" for purposes of the securities laws, accounting principles established by a standard setting body.

Amends the Securities Exchange Act of 1934 to prohibit a public accounting firm from performing certain non-audit services contemporaneously with a mandatory audit.

Mandates audit partner rotation on a five-year basis.

Prohibits a public accounting firm from performing statutorily mandated audit services if its senior executives were employed by the issuer and participated in the audit of such issuer during the one-year period preceding the audit date.

Vests the audit committee of an issuer with oversight authority over any public accounting firm performing audit services.

Requires a chief executive officer and chief financial officer to: (1) certify the veracity of mandatory financial statements; and (2) forfeit certain bonuses and compensation received following an accounting restatement owing to noncompliance with securities laws.

Prohibits insider trades during pension fund blackout periods.

Mandates enhanced disclosure of: (1) material off-balance sheet transactions and relationships; (2) pro forma financial information that is not misleading, and that is reconciled with generally accepted accounting principles; and (3) loans and loan guarantees made to senior executives.

Reduces the mandatory period for disclosure of changes in ownership of securities or security-based swap agreements by certain principal stockholders.

Mandates SEC rules governing analyst conflicts of interest.

 Related & companion bills 2
  • S 2673 Identical bill Public Company Accounting Reform and Investor Protection Act of 2002
  • HR 3763 Sarbanes-Oxley Act of 2002
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). H.R. 5070: Public Company Accounting Reform and Investor Protection Act of 2002. 107th Congress. Open America. https://openamerica.io/bill/107-HR-5070/
MLA
"H.R. 5070: Public Company Accounting Reform and Investor Protection Act of 2002." 107th Congress, 2026, Open America, https://openamerica.io/bill/107-HR-5070/.
Bluebook (legal)
H.R. 5070, 107th Cong. (2026), https://openamerica.io/bill/107-HR-5070/.
Markdown link
[H.R. 5070: Public Company Accounting Reform and Investor Protection Act of 2002](https://openamerica.io/bill/107-HR-5070/)
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