Fostering Innovation Act of 2015

To amend the Sarbanes-Oxley Act of 2002 to provide a temporary exemption for low-revenue issuers from certain auditor attestation requirements. 1. Short title This Act may be cited as the Fostering Innovation Act of 2015 2. Temporary exemption for low-revenue issuers Section 404 of the Sarbanes-Oxley Act of 2002 ( 15 U.S.C. 7262 (d) Temporary exemption for low-Revenue issuers (1) Low-revenue exemption Subsection (b) shall not apply with respect to an audit report prepared for an issuer that— (A) ceased to be an emerging growth company on the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement under the Securities Act of 1933; (B) had average annual gross revenues of less than $50,000,000 as of its most recently completed fiscal year; and (C) is not a large accelerated filer. (2) Expiration of temporary exemption An issuer ceases to be eligible for the exemption described under paragraph (1) at the earliest of— (A) the last day of the fiscal year of the issuer following the tenth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective registration statement under the Securities Act of 1933; (B) the last day of the fiscal year of the issuer during which the average annual gross revenues of the issuer exceed $50,000,000; or (C) the date on which the issuer becomes a large accelerated filer. (3) Definitions For purposes of this subsection: (A) Average annual gross revenues The term average annual gross revenues (B) Emerging growth company The term emerging growth company 15 U.S.C. 78c (C) Large accelerated filer The term large accelerated filer . May 23, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: (This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.) Fostering Innovation Act of 2015 (Sec. 2) This bill amends the Sarbanes-Oxley Act of 2002 with respect to the requirement that each registered public accounting firm that prepares or issues an audit report for an issuer of securities (other than an emerging growth company) shall attest to, and report on, the internal control assessment made by the issuer's management. This requirement shall not apply with respect to any audit report prepared for an issuer that: ceased to be an emerging growth company on the last day of its fiscal year following the fifth anniversary of its first sale of common equity securities, had average annual gross revenues of less than $50 million as of its most recently completed fiscal year, and is not a large accelerated filer. This temporary exemption for low-revenue issuers shall expire upon the earliest of: the last day of the issuer's fiscal year following the tenth anniversary of its first sale of common equity securities pursuant to an effective registration statement under the Securities Act of 1933, the last day of the issuer's fiscal year during which the issuer's average annual gross revenues exceed $50 million, or the date upon which the issuer becomes a large accelerated filer.