Sarbanes-oxley act of 2002

29 Sec. 
108 
SARBANES-OXLEY ACT OF 2002 
3
The Supreme Court held this paragraph to be unconstitutional in the case Free Enterprise 
Fund v. Public Company Accounting Oversight Board (2010). 
the record, after notice and opportunity for a hearing, that the 
Board— 
(A) has violated or is unable to comply with any provi-
sion of this Act, the rules of the Board, or the securities 
laws; or 
(B) without reasonable justification or excuse, has 
failed to enforce compliance with any such provision or 
rule, or any professional standard by a registered public 
accounting firm or an associated person thereof. 
(3)
3
C
ENSURE OF BOARD MEMBERS
; 
REMOVAL FROM OF
-
FICE
.—The Commission may, as necessary or appropriate in 
the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of this Act or the securities 
laws, remove from office or censure any person who is, or at 
the time of the alleged misconduct was, a member of the 
Board, if the Commission finds, on the record, after notice and 
opportunity for a hearing, that such member— 
(A) has willfully violated any provision of this Act, the 
rules of the Board, or the securities laws; 
(B) has willfully abused the authority of that member; 
or 
(C) without reasonable justification or excuse, has 
failed to enforce compliance with any such provision or 
rule, or any professional standard by any registered public 
accounting firm or any associated person thereof. 
SEC. 108. ø15 U.S.C. 7218¿ ACCOUNTING STANDARDS. 
(a) 
(b) C
OMMISSION
A
UTHORITY
.—The Commission shall promul-
gate such rules and regulations to carry out section 19(b) of the Se-
curities Act of 1933, as added by this section, as it deems necessary 
or appropriate in the public interest or for the protection of inves-
tors. 
(c) N
O
E
FFECT ON
C
OMMISSION
P
OWERS
.—Nothing in this Act, 
including this section and the amendment made by this section, 
shall be construed to impair or limit the authority of the Commis-
sion to establish accounting principles or standards for purposes of 
enforcement of the securities laws. 
(d) S
TUDY AND
R
EPORT ON
A
DOPTING
P
RINCIPLES
-B
ASED
A
C
-
COUNTING
.— 
(1) S
TUDY
.— 
(A) I
N GENERAL
.—The Commission shall conduct a 
study on the adoption by the United States financial re-
porting system of a principles-based accounting system. 
(B) S
TUDY TOPICS
.—The study required by subpara-
graph (A) shall include an examination of— 
(i) the extent to which principles-based accounting 
and financial reporting exists in the United States; 
(ii) the length of time required for change from a 
rules-based to a principles-based financial reporting 
system; 
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December 21, 2020 
G:\COMP\SEC\SARBANES-OXLEY ACT OF 2002.XML
As Amended Through P.L. 116-222, Enacted December 18, 2020

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