15 USC 7265 - Disclosure of audit committee financial expert

U.S Code last checked for updates: Nov 22, 2024

§ 7265.

Disclosure of audit committee financial expert

(a)

Rules defining “financial expert”

(b)

Considerations

In defining the term “financial expert” for purposes of subsection (a), the Commission shall consider whether a person has, through education and experience as a public accountant or auditor or a principal financial officer, comptroller, or principal accounting officer of an issuer, or from a position involving the performance of similar functions—

(1)

an understanding of generally accepted accounting principles and financial statements;

(2)

experience in—

(A)

the preparation or auditing of financial statements of generally comparable issuers; and

(B)

the application of such principles in connection with the accounting for estimates, accruals, and reserves;

(3)

experience with internal accounting controls; and

(4)

an understanding of audit committee functions.

(c)

Deadline for rulemaking

The Commission shall—

(1)

propose rules to implement this section, not later than 90 days after July 30, 2002; and

(2)

issue final rules to implement this section, not later than 180 days after July 30, 2002.

(Pub. L. 107–204, title IV, § 407, July 30, 2002, 116 Stat. 790.)

cite as: 15 USC 7265