Sarbanes-oxley act of 2002

16 
Sec. 104 
SARBANES-OXLEY ACT OF 2002 
(A) annually with respect to each registered public ac-
counting firm that regularly provides audit reports for 
more than 100 issuers; and 
(B) not less frequently than once every 3 years with 
respect to each registered public accounting firm that regu-
larly provides audit reports for 100 or fewer issuers. 
(2) A
DJUSTMENTS TO SCHEDULES
.—The Board may, by rule, 
adjust the inspection schedules set under paragraph (1) if the 
Board finds that different inspection schedules are consistent 
with the purposes of this Act, the public interest, and the pro-
tection of investors. The Board may conduct special inspections 
at the request of the Commission or upon its own motion. 
(c) P
ROCEDURES
.—The Board shall, in each inspection under 
this section, and in accordance with its rules for such inspections— 
(1) identify any act or practice or omission to act by the 
registered public accounting firm, or by any associated person 
thereof, revealed by such inspection that may be in violation 
of this Act, the rules of the Board, the rules of the Commission, 
the firm’s own quality control policies, or professional stand-
ards; 
(2) report any such act, practice, or omission, if appro-
priate, to the Commission and each appropriate State regu-
latory authority; and 
(3) begin a formal investigation or take disciplinary action, 
if appropriate, with respect to any such violation, in accordance 
with this Act and the rules of the Board. 
(d) C
ONDUCT OF
I
NSPECTIONS
.—In conducting an inspection of 
a registered public accounting firm under this section, the Board 
shall— 
(1) inspect and review selected audit and review engage-
ments of the firm (which may include audit engagements that 
are the subject of ongoing litigation or other controversy be-
tween the firm and 1 or more third parties), performed at var-
ious offices and by various associated persons of the firm, as 
selected by the Board; 
(2) evaluate the sufficiency of the quality control system of 
the firm, and the manner of the documentation and commu-
nication of that system by the firm; and 
(3) perform such other testing of the audit, supervisory, 
and quality control procedures of the firm as are necessary or 
appropriate in light of the purpose of the inspection and the re-
sponsibilities of the Board. 
(e) R
ECORD
R
ETENTION
.—The rules of the Board may require 
the retention by registered public accounting firms for inspection 
purposes of records whose retention is not otherwise required by 
section 103 or the rules issued thereunder. 
(f) P
ROCEDURES FOR
R
EVIEW
.—The rules of the Board shall 
provide a procedure for the review of and response to a draft in-
spection report by the registered public accounting firm under in-
spection. The Board shall take such action with respect to such re-
sponse as it considers appropriate (including revising the draft re-
port or continuing or supplementing its inspection activities before 
issuing a final report), but the text of any such response, appro-
priately redacted to protect information reasonably identified by 
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December 21, 2020 
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As Amended Through P.L. 116-222, Enacted December 18, 2020

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