Sarbanes-oxley act of 2002

13 Sec. 
103 
SARBANES-OXLEY ACT OF 2002 
(iii) in each audit report for an issuer, describe the 
scope of the auditor’s testing of the internal control 
structure and procedures of the issuer, required by 
section 404(b), and present (in such report or in a sep-
arate report)— 
(I) the findings of the auditor from such test-
ing; 
(II) an evaluation of whether such internal 
control structure and procedures— 
(aa) include maintenance of records that 
in reasonable detail accurately and fairly re-
flect the transactions and dispositions of the 
assets of the issuer; 
(bb) provide reasonable assurance that 
transactions are recorded as necessary to per-
mit preparation of financial statements in ac-
cordance with generally accepted accounting 
principles, and that receipts and expenditures 
of the issuer are being made only in accord-
ance with authorizations of management and 
directors of the issuer; and 
(III) a description, at a minimum, of material 
weaknesses in such internal controls, and of any 
material noncompliance found on the basis of such 
testing. 
(B) shall include, in the quality control standards that 
it adopts with respect to the issuance of audit reports, re-
quirements for every registered public accounting firm re-
lating to— 
(i) monitoring of professional ethics and independ-
ence from issuers, brokers, and dealers on behalf of 
which the firm issues audit reports; 
(ii) consultation within such firm on accounting 
and auditing questions; 
(iii) supervision of audit work; 
(iv) hiring, professional development, and ad-
vancement of personnel; 
(v) the acceptance and continuation of engage-
ments; 
(vi) internal inspection; and 
(vii) such other requirements as the Board may 
prescribe, subject to subsection (a)(1). 
(3) A
UTHORITY TO ADOPT OTHER STANDARDS
.— 
(A) I
N GENERAL
.—In carrying out this subsection, the 
Board— 
(i) may adopt as its rules, subject to the terms of 
section 107, any portion of any statement of auditing 
standards or other professional standards that the 
Board determines satisfy the requirements of para-
graph (1), and that were proposed by 1 or more profes-
sional groups of accountants that shall be designated 
or recognized by the Board, by rule, for such purpose, 
pursuant to this paragraph or 1 or more advisory 
groups convened pursuant to paragraph (4); and 
VerDate Mar 15 2010 
18:34 Dec 21, 2020
Jkt 000000
PO 00000
Frm 00013
Fmt 9001
Sfmt 9001
G:\COMP\SEC\SAO2.BEL
HOLC
December 21, 2020 
G:\COMP\SEC\SARBANES-OXLEY ACT OF 2002.XML
As Amended Through P.L. 116-222, Enacted December 18, 2020

---