Page:United States Statutes at Large Volume 124.djvu/1955

124 STAT. 1929 PUBLIC LAW 111–203—JULY 21, 2010 (A) in paragraph (2)(A), by striking ‘‘issuers’’ and inserting ‘‘issuers, brokers, and dealers’’; and (B) by striking ‘‘issuer’’ each place that term appears and inserting ‘‘issuer, broker, or dealer’’. (d) AUDITING AND INDEPENDENCE.—Section 103(a) of the Sar- banes-Oxley Act of 2002 (15 U.S.C. 7213(a)) is amended— (1) in paragraph (1), by striking ‘‘and such ethics standards’’ and inserting ‘‘such ethics standards, and such independence standards’’; (2) in paragraph (2)(A)(iii), by striking ‘‘describe in each audit report’’ and inserting ‘‘in each audit report for an issuer, describe’’; and (3) in paragraph (2)(B)(i), by striking ‘‘issuers’’ and inserting ‘‘issuers, brokers, and dealers’’. (e) INSPECTIONS OF REGISTERED PUBLIC ACCOUNTING FIRMS.— (1) AMENDMENTS.—Section 104(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214(a)) is amended— (A) by striking ‘‘The Board shall’’ and inserting the following: ‘‘(1) INSPECTIONS GENERALLY.—The Board shall’’; and (B) by adding at the end the following: ‘‘(2) INSPECTIONS OF AUDIT REPORTS FOR BROKERS AND DEALERS.— ‘‘(A) The Board may, by rule, conduct and require a program of inspection in accordance with paragraph (1), on a basis to be determined by the Board, of registered public accounting firms that provide one or more audit reports for a broker or dealer. The Board, in establishing such a program, may allow for differentiation among classes of brokers and dealers, as appropriate. ‘‘(B) If the Board determines to establish a program of inspection pursuant to subparagraph (A), the Board shall consider in establishing any inspection schedules whether differing schedules would be appropriate with respect to registered public accounting firms that issue audit reports only for one or more brokers or dealers that do not receive, handle, or hold customer securities or cash or are not a member of the Securities Investor Protection Corporation. ‘‘(C) Any rules of the Board pursuant to this paragraph shall be subject to prior approval by the Commission pursu- ant to section 107(b) before the rules become effective, including an opportunity for public notice and comment. ‘‘(D) Notwithstanding anything to the contrary in sec- tion 102 of this Act, a public accounting firm shall not be required to register with the Board if the public accounting firm is exempt from the inspection program which may be established by the Board under subpara- graph (A).’’. (2) CONFORMING AMENDMENT.—Section 17(e)(1)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(e)(1)(A)) is amended by striking ‘‘registered public accounting firm’’ and inserting ‘‘independent public accounting firm, or by a reg- istered public accounting firm if the firm is required to be registered under the Sarbanes-Oxley Act of 2002,’’. (f) INVESTIGATIONS AND DISCIPLINARY PROCEEDINGS.—Section 105(c)(7)(B) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(c)(7)(B)) is amended—