,,ii  #aaith ,,congress  #ast ,session  
,s4 #bchb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bb1     
#bjbe,mr4 ,scott of ,florida introduced 
the following bill2 which was read twice
 and referred to the ,committee on      
,banking1 ,housing1 and ,urban ,affairs 
,a ,,bill  ,to amend the                
,sarbanes-,oxley ,act of #bjjb to       
provide for disclosure regarding foreign
 jurisdictions that hinder inspections1 
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,trusted ,foreign ,auditing ,act of     
#bjbe4  #b4 ,inspection of registered   
public accounting firms ,section        
#ajd7;i7 of the ,sarbanes-,oxley ,act of
 #bjjb 7#ae ,u4,s4,c4 #gbad7;i77 is     
amended-- 7#a7 in paragraph 7#a7-- 7,a7 
by redesignating subparagraphs 7,a7 and 
7,b7 as subparagraphs 7,c7 and 7,d71    
respectively2 and  7,b7 by inserting    
before subparagraph 7,c71 as so         
redesignated1 the following3  7,a7 the  
term compromised auditor means1 with    

respect to a registered public          
accounting firm1 an independent branch  
or office of that firm 7or a subsidiary 
of such a branch or office7 that-- 7i7  
is subject to the jurisdiction and laws 
of the government of a covered country2 
7ii7 is directly or indirectly          
controlled1 directed1 or materially     
influenced by a covered country2  7iii7 
has a manager or owner1 or conducts any 
operation1 that is subject to the direct
 influence of a covered country2 or     
7iv7 has entered into any arrangement1  
agreement1 or relationship with the     
government or political party of a      
covered country that could compromise   
the objectivity1 integrity1 or          
independence of the branch1 office1 or  
subsidiary in performing auditing or    
attestation services2  7,b7 the term    
covered country means-- 7i7 any country 
7including any special administrative   
region of such country7 identified as a 
threat to the national security of the  
,united ,states in the most recent      

report submitted to ,congress by the    
,director of ,national ,intelligence    
pursuant to section #ajh;,b of the      
,national ,security ,act of #aidg 7#ej  
,u4,s4,c4 #cjdc;b7 7commonly referred to
 as the ,annual ,threat ,assessment72 or
  7ii7 any covered nation 7as defined in
 section #dhgb7;f77#b7 of title #aj1    
,united ,states ,code72  2  7#b7 in     
paragraph 7#b77;,a7-- 7,a7 in the matter
 preceding clause 7i71 by striking      
paragraph 7#a77;,a7 and inserting       
paragraph 7#a77;,c72 and  7,b7 in clause
 7ii71 by inserting is a compromised    
auditor that before the ,board is       
unable2 and  7#c7 by adding at the end  
the following3  7#e7 ,trading           
prohibition ,if a covered issuer that is
 headquartered in a covered country     
retains a compromised auditor to prepare
 an audit report described in paragraph 
7#b77;,a7 for the covered issuer1 the   
trading prohibition described in        
paragraph 7#c7 shall apply to the       
covered issuer4  4  #c4 ,public hearings

 ,section #aje7;c7 of the               
,sarbanes-,oxley ,act of #bjjb 7#ae     
,u4,s4,c4 #gbae7;c77 is amended by      
striking paragraph 7#b7 and inserting   
the following3  7#b7 ,public hearings   
7,a7 ,definitions ,in this paragraph1   
the terms compromised auditor and       
covered issuer have the meanings given  
those terms in section #ajd7;i77#a74    
7,b7 ,conditions ,hearings under this   
section shall not be public1 unless--   
7i7 a compromised auditor retained by a 
covered issuer is a party to the        
hearing2 or  7ii7 otherwise ordered by  
the ,board for good cause shown1 with   
the consent of the parties to such      
hearing4  4