Fostering Innovation Act of 2015

1/11/2023, 1:32 PM

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Fostering Innovation Act of 2015

(Sec. 2) This bill amends the Sarbanes-Oxley Act of 2002 with respect to the requirement that each registered public accounting firm that prepares or issues an audit report for an issuer of securities (other than an emerging growth company) shall attest to, and report on, the internal control assessment made by the issuer's management.

This requirement shall not apply with respect to any audit report prepared for an issuer that:

  • ceased to be an emerging growth company on the last day of its fiscal year following the fifth anniversary of its first sale of common equity securities,
  • had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and
  • is not a large accelerated filer.

This temporary exemption for low-revenue issuers shall expire upon the earliest of:

  • the last day of the issuer's fiscal year following the tenth anniversary of its first sale of common equity securities pursuant to an effective registration statement under the Securities Act of 1933,
  • the last day of the issuer's fiscal year during which the issuer's average annual gross revenues exceed $50 million, or
  • the date upon which the issuer becomes a large accelerated filer.
Congress
114

Number
HR - 4139

Introduced on
2015-12-01

# Amendments
0

Sponsors
+5

Cosponsors
+5

Variations and Revisions

5/24/2016

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Fostering Innovation Act of 2015

(Sec. 2) This bill amends the Sarbanes-Oxley Act of 2002 with respect to the requirement that each registered public accounting firm that prepares or issues an audit report for an issuer of securities (other than an emerging growth company) shall attest to, and report on, the internal control assessment made by the issuer's management.

This requirement shall not apply with respect to any audit report prepared for an issuer that:

  • ceased to be an emerging growth company on the last day of its fiscal year following the fifth anniversary of its first sale of common equity securities,
  • had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and
  • is not a large accelerated filer.

This temporary exemption for low-revenue issuers shall expire upon the earliest of:

  • the last day of the issuer's fiscal year following the tenth anniversary of its first sale of common equity securities pursuant to an effective registration statement under the Securities Act of 1933,
  • the last day of the issuer's fiscal year during which the issuer's average annual gross revenues exceed $50 million, or
  • the date upon which the issuer becomes a large accelerated filer.
Alternative Names
Official Title as IntroducedTo amend the Sarbanes-Oxley Act of 2002 to provide a temporary exemption for low-revenue issuers from certain auditor attestation requirements.

Policy Areas
Finance and Financial Sector

Potential Impact
Accounting and auditing
Business records
Government information and archives
Securities

Comments

Recent Activity

Latest Summary6/8/2016

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Fostering Innovation Act of 2015

(Sec. 2) This bill amends the Sarbanes-Oxley Act of 2002 wit...


Latest Action5/24/2016
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.