Title 15 — Commerce and TradeRelease 119-73

§7242 Improper influence on conduct of audits

Title 15 › Chapter CHAPTER 98— - PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY › Subchapter SUBCHAPTER III— - CORPORATE RESPONSIBILITY › § 7242

Last updated Apr 6, 2026|Official source

Summary

Makes it illegal for a company's officers, directors, or people working under their direction to pressure, trick, or mislead outside auditors who are checking the company's financial statements if the goal is to make those statements materially misleading. The Commission must write rules to protect investors and the public interest. Only the Commission can bring civil enforcement actions under these rules. These rules add to other laws and do not replace them. The Commission must propose the rules within 90 days after July 30, 2002, and issue final rules within 270 days after July 30, 2002.

Full Legal Text

Title 15, §7242

Commerce and Trade — Source: USLM XML via OLRC

(a)It shall be unlawful, in contravention of such rules or regulations as the Commission shall prescribe as necessary and appropriate in the public interest or for the protection of investors, for any officer or director of an issuer, or any other person acting under the direction thereof, to take any action to fraudulently influence, coerce, manipulate, or mislead any independent public or certified accountant engaged in the performance of an audit of the financial statements of that issuer for the purpose of rendering such financial statements materially misleading.

(b)In any civil proceeding, the Commission shall have exclusive authority to enforce this section and any rule or regulation issued under this section.

(c)The provisions of subsection (a) shall be in addition to, and shall not supersede or preempt, any other provision of law or any rule or regulation issued thereunder.

(d)The Commission shall—

(1)propose the rules or regulations required by this section, not later than 90 days after July 30, 2002; and

(2)issue final rules or regulations required by this section, not later than 270 days after July 30, 2002.

Reference

Citations & Metadata

Citation

15 U.S.C. § 7242

Title 15 — Commerce and Trade

Last Updated

Apr 6, 2026

Release point: 119-73