PUBLIC LAW 107-204-^ULY 30, 2002 116 STAT. 775 any capacity in the audit of that issuer during the 1-year period preceding the date of the initiation of the audit.". SEC. 207. STUDY OF MANDATORY ROTATION OF REGISTERED PUBLIC 15 USC 7232. ACCOUNTING FIRMS. (a) STUDY AND REVIEW REQUIRED. —The Comptroller General of the United States shall conduct a study and review of the potential effects of requiring the mandatory rotation of registered public accounting firms. (b) REPORT REQUIRED. —Not later than 1 year after the date Deadline. of enactment of this Act, the Comptroller General shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the results of the study and review required by this section. (c) DEFINITION. —For purposes of this section, the term "mandatory rotation" refers to the imposition of a limit on the period of years in which a particular registered public accounting firm may be the auditor of record for a particular issuer. SEC. 208. COMMISSION AUTHORITY. 15 USC 7233. (a) COMMISSION REGULATIONS.— Not later than 180 days after Deadline, the date of enactment of this Act, the Commission shall issue final regulations to carry out each of subsections (g) through (1) of section lOA of the Securities Exchange Act of 1934, as added by this title. (b) AUDITOR INDEPENDENCE. —It shall be unlawful for any registered public accounting firm (or an associated person thereof, as applicable) to prepare or issue any audit report with respect to any issuer, if the firm or associated person engages in any activity with respect to that issuer prohibited by any of subsections (g) through (1) of section lOA of the Securities Exchange Act of 1934, as added by this title, or any rule or regulation of the Commission or of the Board issued thereunder. SEC. 209. CONSIDERATIONS BY APPROPRIATE STATE REGULATORY AUTHORITIES. In supervising nonregistered public accounting firms and their associated persons, appropriate State regulatory authorities should make an independent determination of the proper standards applicable, particularly taking into consideration the size and nature of the business of the accounting firms they supervise and the size and nature of the business of the clients of those firms. The standards applied by the Board under this Act should not be presumed to be applicable for purposes of this section for small and medium sized nonregistered public accounting firms. TITLE III—CORPORATE RESPONSIBILITY 15 USC 7234. SEC. 301. PUBLIC COMPANY AUDIT COMMITTEES. Section lOA of the Securities Exchange Act of 1934 (15 U.S.C. 78f) is amended by adding at the end the following: " (m) STANDARDS RELATING TO AUDIT COMMITTEES.— " (1) COMMISSION RULES. — 15 USC 7^-1. 99-194O-03 -26:QL3PartI
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