Securities Lawyer's Deskbook
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The

Sarbanes-Oxley Act of 2002





Section 204 -- Auditor Reports to Audit Committees


Section 10A of the Securities Exchange Act of 1934, as amended by this Act, is amended by adding at the end the following:

    "(k) Reports to Audit Committees.--Each registered public accounting firm that performs for any issuer any audit required by this title shall timely report to the audit committee of the issuer--
      "(1) all critical accounting policies and practices to be used;
      "(2) all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials of the issuer, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the registered public accounting firm; and
      "(3) other material written communications between the registered public accounting firm and the management of the issuer, such as any management letter or schedule of unadjusted differences.".




Legislative History


July 30, 2002, 107 P.L. 204, Title II, § 204, 116 Stat. 745.



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