{"identifier":"/us/usc/t15/s7220","title":15,"num":"\u00a7\u202f7220.","heading":"Definitions","text":"\u00a7\u202f7220.\nDefinitions\nFor the purposes of this subchapter, the following definitions shall apply:\n(1)\nAudit\nThe term \u201caudit\u201d means an examination of the financial statements, reports, documents, procedures, controls, or notices of any issuer, broker, or dealer by an independent public accounting firm in accordance with the rules of the Board or the Commission, for the purpose of expressing an opinion on the financial statements or providing an audit report.\n(2)\nAudit report\nThe term \u201caudit report\u201d means a document, report, notice, or other record\u2014\n(A) prepared following an audit performed for purposes of compliance by an issuer, broker, or dealer with the requirements of the securities laws; and\n(B) in which a public accounting firm either\u2014\n(i) sets forth the opinion of that firm regarding a financial statement, report, notice, or other document, procedures, or controls; or\n(ii) asserts that no such opinion can be expressed.\n(3)\nBroker\nThe term \u201cbroker\u201d means a broker (as such term is defined in\nsection 78c(a)(4) of this title\nsection 78q(e)(1)(A) of this title\n(4)\nDealer\nThe term \u201cdealer\u201d means a dealer (as such term is defined in\nsection 78c(a)(5) of this title\nsection 78q(e)(1)(A) of this title\n(5)\nProfessional standards\nThe term \u201cprofessional standards\u201d means\u2014\n(A) accounting principles that are\u2014\n(i) established by the standard setting body described in\nsection 77s(b) of this title\nsection 77s(a) of this title\nsection 78m(b) of this title\n(ii) relevant to audit reports for particular issuers, brokers, or dealers, or dealt with in the quality control system of a particular registered public accounting firm; and\n(B) auditing standards, standards for attestation engagements, quality control policies and procedures, ethical and competency standards, and independence standards (including rules implementing title II) that the Board or the Commission determines\u2014\n(i) relate to the preparation or issuance of audit reports for issuers, brokers, or dealers; and\n(ii) are established or adopted by the Board under\nsection 7213(a) of this title\n(6)\nSelf-regulatory organization\nThe term \u201cself-regulatory organization\u201d has the same meaning as in\nsection 78c(a) of this title","url":"https://projectusc.org/usc/t15/s7220.html","content":[{"t":"sec","id":"/us/usc/t15/s7220","children":[{"t":"num","text":"\u00a7\u202f7220."},{"t":"heading","text":"Definitions","tail":"\n"},{"t":"chapeau","text":"For the purposes of this subchapter, the following definitions shall apply:"},{"t":"para","id":"/us/usc/t15/s7220/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Audit"},{"t":"content","children":[{"t":"p","text":"The term \u201caudit\u201d means an examination of the financial statements, reports, documents, procedures, controls, or notices of any issuer, broker, or dealer by an independent public accounting firm in accordance with the rules of the Board or the Commission, for the purpose of expressing an opinion on the financial statements or providing an audit report.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s7220/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Audit report"},{"t":"chapeau","text":"The term \u201caudit report\u201d means a document, report, notice, or other record\u2014"},{"t":"subpara","id":"/us/usc/t15/s7220/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" prepared following an audit performed for purposes of compliance by an issuer, broker, or dealer with the requirements of the securities laws; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s7220/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" in which a public accounting firm either\u2014"},{"t":"clause","id":"/us/usc/t15/s7220/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" sets forth the opinion of that firm regarding a financial statement, report, notice, or other document, procedures, or controls; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s7220/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" asserts that no such opinion can be expressed.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s7220/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Broker"},{"t":"content","children":[{"t":"p","text":"The term \u201cbroker\u201d means a broker (as such term is defined in ","children":[{"t":"ref","text":"section 78c(a)(4) of this title","href":"/us/usc/t15/s78c/a/4","tail":") that is required to file a balance sheet, income statement, or other financial statement under "},{"t":"ref","text":"section 78q(e)(1)(A) of this title","href":"/us/usc/t15/s78q/e/1/A","tail":", where such balance sheet, income statement, or financial statement is required to be certified by a registered public accounting firm."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s7220/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Dealer"},{"t":"content","children":[{"t":"p","text":"The term \u201cdealer\u201d means a dealer (as such term is defined in ","children":[{"t":"ref","text":"section 78c(a)(5) of this title","href":"/us/usc/t15/s78c/a/5","tail":") that is required to file a balance sheet, income statement, or other financial statement under "},{"t":"ref","text":"section 78q(e)(1)(A) of this title","href":"/us/usc/t15/s78q/e/1/A","tail":", where such balance sheet, income statement, or financial statement is required to be certified by a registered public accounting firm."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s7220/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Professional standards"},{"t":"chapeau","text":"The term \u201cprofessional standards\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t15/s7220/5/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" accounting principles that are\u2014"},{"t":"clause","id":"/us/usc/t15/s7220/5/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" established by the standard setting body described in ","children":[{"t":"ref","text":"section 77s(b) of this title","href":"/us/usc/t15/s77s/b","tail":", as amended by this Act, or prescribed by the Commission under "},{"t":"ref","text":"section 77s(a) of this title","href":"/us/usc/t15/s77s/a","tail":" or "},{"t":"ref","text":"section 78m(b) of this title","href":"/us/usc/t15/s78m/b","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s7220/5/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" relevant to audit reports for particular issuers, brokers, or dealers, or dealt with in the quality control system of a particular registered public accounting firm; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s7220/5/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" auditing standards, standards for attestation engagements, quality control policies and procedures, ethical and competency standards, and independence standards (including rules implementing title II) that the Board or the Commission determines\u2014"},{"t":"clause","id":"/us/usc/t15/s7220/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" relate to the preparation or issuance of audit reports for issuers, brokers, or dealers; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s7220/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" are established or adopted by the Board under ","children":[{"t":"ref","text":"section 7213(a) of this title","href":"/us/usc/t15/s7213/a","tail":", or are promulgated as rules of the Commission."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s7220/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Self-regulatory organization"},{"t":"content","children":[{"t":"p","text":"The term \u201cself-regulatory organization\u201d has the same meaning as in ","children":[{"t":"ref","text":"section 78c(a) of this title","href":"/us/usc/t15/s78c/a","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}