(2) the extent to which the Commission and the 
Board may, under existing statutes, take reasonable 
steps— 
(A) to increase the number of qualified ac-
counting firms; and 
(B) to eliminate de minimis conflict of in-
terest provisions; and 
(3) methods that may be undertaken for en-
couraging— 
(A) the largest public accounting firms to 
partner with smaller public accounting firms; 
and 
(B) coalitions among smaller public ac-
counting firms to compete for business for larg-
er more complex issuers. 
(c) REPORT.—Within 6 months after the date of en-
actment of this Act, the Commission and the Board shall 
submit a joint report on the study required by this section 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate. Such report shall— 
(1) contain the results of the examination of 
each of the subjects identified in subsection (b); 
(2) make recommendations to the accounting 
industry of measures that may be undertaken under 
VerDate Aug 31 2005 
03:58 Mar 15, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1508.IH
H1508
mstockstill on PROD1PC66 with BILLS
existing statutes, regulations, and standards to al-
leviate the concentration described in subsection 
(b)(1); 
(3) identify the measures that the Commission 
and the Board should undertake to alleviate such 
concentration; and 
(4) make any recommendations to the Congress 
for changes in the laws administered by the Com-
mission and the Board that the Commission or the 
Board consider appropriate and necessary on the 
basis of the examination. 
SEC. 5. PRINCIPALS-BASED GUIDANCE STUDY. 
(a) STUDY REQUIRED.—The Commission and the 
Board shall conduct a study comparing and contrasting 
the principles-based Turnbull Guidance under the securi-
ties laws of Great Britain to the implementation of section 
404 of the Sarbanes-Oxley Act of 2002. 
(b) REPORT.—Within one year after the date of en-
actment of this Act, the Commission and the Board shall 
submit a joint report on the study required by this section 
to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate. Such report shall— 
(1) compare— 
VerDate Aug 31 2005 
03:58 Mar 15, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1508.IH
H1508
mstockstill on PROD1PC66 with BILLS
(A) the relative accounting and other costs 
of— 
(i) 
the 
principles-based 
Turnbull 
Guidance under the securities laws of 
Great Britain; and 
(ii) the implementation of section 404 
of the Sarbanes-Oxley Act of 2002; in rela-
tion to 
(B) the relative— 
(i) reduction in the level of risk to in-
vestors; and 
(ii) increase in the level of investor 
confidence in the financial statements of 
issuers; and 
(2) recommend to the Congress appropriate 
measures to alleviate accounting and other costs in 
relation to the reduction of such risk and the in-
crease in such confidence. 
SEC. 6. DEFINITIONS. 
For purposes of this Act, the terms ‘‘audit’’, 
‘‘Board’’, ‘‘Commission’’, ‘‘issuer’’, and ‘‘public account-
ing firm’’ have the meanings given such terms in section 
2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201). 
Æ 
VerDate Aug 31 2005 
03:58 Mar 15, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6301
E:\BILLS\H1508.IH
H1508
mstockstill on PROD1PC66 with BILLS