§7220 — Title 15 Commerce and Trade | U.S. Code

Summary

Defines key words used here about audits and accounting so people know what those words mean. Audit — an independent public accounting firm’s review of a firm’s financial statements, reports, controls, and related records under the Board’s or the Commission’s rules to form an opinion. Audit report — a document made after such an audit that gives the accountant’s opinion on the financial statements or says no opinion can be given. Broker — a broker as defined in 15 U.S.C. 78c(a)(4) who must file financial statements under 15 U.S.C. 78q(e)(1)(A) that are certified by a registered public accounting firm. Dealer — a dealer as defined in 15 U.S.C. 78c(a)(5) with the same filing and certification duty under 15 U.S.C. 78q(e)(1)(A). Professional standards — the accounting, auditing, quality-control, ethics, competence, and independence rules relevant to audits, as set or prescribed under 15 U.S.C. 77s(a), 77s(b), 78m(b), or adopted by the Board under 15 U.S.C. 7213(a). Self-regulatory organization — has the same meaning as in 15 U.S.C. 78c(a).

Title 15, §7220

Commerce and Trade — Source: USLM XML via OLRC

For the purposes of this subchapter, the following definitions shall apply:

(1)The term “audit” means an examination of the financial statements, reports, documents, procedures, controls, or notices of any issuer, broker, or dealer by an independent public accounting firm in accordance with the rules of the Board or the Commission, for the purpose of expressing an opinion on the financial statements or providing an audit report.

(2)The term “audit report” means a document, report, notice, or other record—

(A)prepared following an audit performed for purposes of compliance by an issuer, broker, or dealer with the requirements of the securities laws; and

(B)in which a public accounting firm either—

(i)sets forth the opinion of that firm regarding a financial statement, report, notice, or other document, procedures, or controls; or

(ii)asserts that no such opinion can be expressed.

(3)The term “broker” means a broker (as such term is defined in section 78c(a)(4) of this title) that is required to file a balance sheet, income statement, or other financial statement under section 78q(e)(1)(A) of this title, where such balance sheet, income statement, or financial statement is required to be certified by a registered public accounting firm.

(4)The term “dealer” means a dealer (as such term is defined in section 78c(a)(5) of this title) that is required to file a balance sheet, income statement, or other financial statement under section 78q(e)(1)(A) of this title, where such balance sheet, income statement, or financial statement is required to be certified by a registered public accounting firm.

(5)The term “professional standards” means—

(A)accounting principles that are—

(i)established by the standard setting body described in section 77s(b) of this title, as amended by this Act, or prescribed by the Commission under section 77s(a) of this title or section 78m(b) of this title; and

(ii)relevant to audit reports for particular issuers, brokers, or dealers, or dealt with in the quality control system of a particular registered public accounting firm; and

(B)auditing standards, standards for attestation engagements, quality control policies and procedures, ethical and competency standards, and independence standards (including rules implementing title II) that the Board or the Commission determines—

(i)relate to the preparation or issuance of audit reports for issuers, brokers, or dealers; and

(ii)are established or adopted by the Board under section 7213(a) of this title, or are promulgated as rules of the Commission.

(6)The term “self-regulatory organization” has the same meaning as in section 78c(a) of this title.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 77s(b) of this title, as amended by this Act, referred to in par. (5)(A)(i), means section 77s(b) of this title, as amended by Pub. L. 107–204. Title II, referred to in par. (5)(B), means title II of Pub. L. 107–204, July 30, 2002, 116 Stat. 771, which enacted subchapter II of this chapter and amended section 78c, 78j–1, 78l and 78q of this title. For complete classification of title II to the Code, see Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.

§7220 Definitions