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Title 15, Commerce and TradeRelease 119-110

§7242 Improper Influence on Conduct of Audits

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

Last updated Sep 22, 2026|Official source

Summary

Makes it illegal for company officers, directors, or people they control to try to trick, force, or mislead an independent outside auditor so the company’s audited financial statements become seriously misleading. The Commission will write rules needed to protect investors, and only the Commission can bring civil cases to enforce these rules. These rules add to other laws and do not replace them. The Commission had to propose those rules no later than 90 days after July 30, 2002, and issue final rules no later than 270 days after July 30, 2002.

Full Legal Text

Title 15, §7242

Commerce and Trade, Source: USLM XML via OLRC

(a)Rules to prohibit
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)Enforcement
In any civil proceeding, the Commission shall have exclusive authority to enforce this section and any rule or regulation issued under this section.
(c)No preemption of other law
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)Deadline for rulemaking
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

Sep 22, 2026

Release point: 119-110