15 U.S.C. § 7220: Definitions

Summary

Sets the meanings of key words used in this part so people know what the terms mean. Audit — an independent public accounting firm’s check of an issuer’s, broker’s, or dealer’s financial records, controls, or related documents under rules of the Board or the Commission to form an opinion or produce an audit report. Audit report — a record made after an audit for compliance that either gives the firm’s opinion on the financial statements, procedures, or controls, or says no opinion can be given. Broker — a broker as defined in section 78c(a)(4) of this title who must file financial statements under section 78q(e)(1)(A) and have them certified by a registered public accounting firm. Dealer — a dealer as defined in section 78c(a)(5) of this title who must file financial statements under section 78q(e)(1)(A) and have them certified by a registered public accounting firm. Professional standards — the accounting principles, auditing and attestation rules, quality control, ethics, competence, and independence standards that apply to audit reports, including those set by the standard-setting body in section 77s(b), prescribed under sections 77s(a) or 78m(b), or established or adopted by the Board under section 7213(a) or by Commission rule. Self-regulatory organization — has the same meaning as in section 78c(a) of this title.

Title 15, §7220

Commerce and Trade, Source: USLM XML via OLRC

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

(1)Audit

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)Audit report

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)Broker

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)Dealer

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)Professional standards

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)Self-regulatory organization

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