Bill · H.R. 4616· House(119-HR-4616)
Trusted Foreign Auditing Act of 2025
- Introduced
- 7/22/2025
- Last activity
- 7/22/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Elise Stefanik
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Trusted Foreign Auditing Act of 2025 seeks to amend the Sarbanes-Oxley Act of 2002. It introduces the term "compromised auditor" to describe certain accounting branches or offices influenced by a "covered country." A "covered country" includes nations identified as national security threats or those defined in specific United States Code sections. The bill establishes new disclosure and trading prohibition requirements for certain issuers. Finally, it modifies the rules regarding when public hearings can be held.
Yes
Does this give people more protection from unfair business practices?+3
The bill increases transparency regarding foreign jurisdictions that may influence auditing objectivity.
Does this make what the government does easier for the public to see?+2
The bill requires more disclosure regarding foreign influence over accounting firms.
Does this better protect the country from computer attacks?+1
The bill targets foreign influence in auditing, which can be a component of national security integrity.
The opposite
Would business owners be better off under this?-2
The new regulatory and trading restrictions may create compliance burdens for international businesses.
Is this likely to grow the economy?-2
The bill imposes trading prohibitions on certain foreign issuers which could reduce market liquidity and economic activity.
Would people with substantial wealth be better off under this?-1
The trading prohibitions could impact the investment portfolios of high-net-worth individuals holding foreign issuer stocks.
Who it would affect, and how
Potential Positive Impacts for People
-
Trading Prohibitions: The bill establishes a trading prohibition for a covered issuer headquartered in a country of concern if that issuer retains a compromised auditor (Section 2, paragraph (3)).
-
Increased Transparency via Definitions: By defining "compromised auditor" based on government influence or arrangements that could compromise objectivity, the bill provides specific criteria regarding the integrity of auditing services (Section 2, paragraph (1)(A)).
Potential Negative Impacts for People
- Restrictions on Hearings: The bill changes the conditions for public hearings, stating that hearings shall not be public unless a compromised auditor is a party or the Board orders it for good cause (Section 3).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners-2Good For High Net Worth Individuals-1
- Governance And Ideology
- Improves Government Transparency+2
- Economy And Finance
- Improves Consumer Protection+3Improves Economic Growth-2
- National Security And Foreign Policy
- Improves Cybersecurity Defense+1
- 7/22/2025
- Referred to the House Committee on Financial Services.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.