Wendy Sherman: “I will read it so that it is before the entire House. ``It is the intent of this legislation to provide the Securities…”

“I will read it so that it is before the entire House. ``It is the intent of this legislation to provide the Securities and Exchange Commission with the discretion necessary to determine how much of a company's total audit must be performed by a firm beyond the reach of PCAOB inspections before trading in the company's securities is prohibited by the Commission. Consistent with our work with the Securities and Exchange Commission on this legislation, it is our expectation that the Commission will not prohibit trading in the securities of companies under this act, as long as not more than one- third of a company's total audit is performed by a firm beyond the reach of the PCAOB inspections. This legislation provides the Commission with the authority to determine how an audit would be measured, whether that be total revenue, assets, or another metric. ``Furthermore, the scope of this legislation is not intended to be limited to public companies which rely on foreign audit firms that have some form of ownership relationship with a PCAOB-registered public accounting firm. Specifically, it is intended to also encompass public companies which rely on foreign audit firms that are affiliated with or maintain some form of affiliation agreement with a PCAOB-registered public accounting firm.'' Mr.…”