[Congressional Record Volume 170, Number 115 (Thursday, July 11, 2024)]
[Senate]
[Page S4799]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2473. Mr. RUBIO submitted an amendment intended to be proposed by 
him to the bill S. 4638, to authorize appropriations for fiscal year 
2025 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. _____. TRUSTED FOREIGN AUDITING.

       (a) Inspection of Registered Public Accounting Firms.--
     Section 104(i) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7214(i)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (C) and (D), respectively; and
       (B) by inserting before subparagraph (C), as so 
     redesignated, the following:
       ``(A) the term `compromised auditor' means, with respect to 
     a registered public accounting firm, an independent branch or 
     office of that firm (or a subsidiary of such a branch or 
     office) that--
       ``(i) is subject to the jurisdiction and laws of the 
     government of a covered country;
       ``(ii) is directly or indirectly controlled, directed, or 
     materially influenced by a covered country;
       ``(iii) has a manager or owner, or conducts any operation, 
     that is subject to the direct influence of a covered country; 
     or
       ``(iv) has entered into any arrangement, agreement, or 
     relationship with the government or political party of a 
     covered country that could compromise the objectivity, 
     integrity, or independence of the branch, office, or 
     subsidiary in performing auditing or attestation services;
       ``(B) the term `covered country' means--
       ``(i) any country (including any special administrative 
     region of such country) 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 108B of the National 
     Security Act of 1947 (50 U.S.C. 3043b) (commonly referred to 
     as the `Annual Threat Assessment'); or
       ``(ii) any covered nation (as defined in section 4872(d)(2) 
     of title 10, United States Code);'';
       (2) in paragraph (2)(A)--
       (A) in the matter preceding clause (i), by striking 
     ``paragraph (1)(A)'' and inserting ``paragraph (1)(C)''; and
       (B) in clause (ii), by inserting ``is a compromised auditor 
     that'' before ``the Board is unable''; and
       (3) by adding at the end the following:
       ``(5) Trading prohibition.--If a covered issuer that is 
     headquartered in a country of concern retains a compromised 
     auditor to prepare an audit report described in paragraph 
     (2)(A) for the covered issuer, the trading prohibition 
     described in paragraph (3) shall apply to the covered 
     issuer.''.
       (b) Public Hearings.--Section 105(c) of the Sarbanes-Oxley 
     Act of 2002 (15 U.S.C. 7215(c)) is amended by striking 
     paragraph (2) and inserting the following:
       ``(2) Public hearings.--
       ``(A) Definitions.--In this paragraph, the terms 
     `compromised auditor' and `covered issuer' have the meanings 
     given those terms in section 104(i)(1).
       ``(B) Conditions.--Hearings under this section shall not be 
     public, unless--
       ``(i) a compromised auditor retained by a covered issuer is 
     a party to the hearing; or
       ``(ii) otherwise ordered by the Board for good cause shown, 
     with the consent of the parties to such hearing.''.
                                 ______