In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Muhammad Ali Commemorative Coin 
Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) Muhammad Ali was an Olympic gold medalist, 3-time World 
        Heavyweight Champion boxer, and one of the most celebrated and 
        well-known athletes in American history;
            (2) Muhammad Ali showed, beyond his impressive fighting 
        prowess in the boxing ring, even greater courage and tenacity 
        as an advocate outside the ring;
            (3) Muhammad Ali was a great philanthropist and a strong 
        champion of peace, equality, and freedom;
            (4) Muhammad Ali remains an icon of freedom of conscience;
            (5) Muhammad Ali was a prominent African American of the 
        Muslim faith, and was, and continues to be, a role model to the 
        citizens of the United States of all races, ethnicities, and 
        religions;
            (6) Muhammad Ali used his fame to advocate for humanitarian 
        causes in audiences with world leaders ranging from religious 
        leaders to heads of state; and
            (7) Muhammad Ali inspired people around the globe in 
        displaying the same vibrant and larger-than-life character and 
        dedication in spite of his physical ailments.

SEC. 3. COIN SPECIFICATIONS.

    (a) Denominations.--The Secretary of the Treasury (hereafter in 
this Act referred to as the ``Secretary'') shall mint and issue the 
following coins in commemoration of Muhammad Ali:
            (1) $5 gold coins.--Not more than 100,000 $5 coins, which 
        shall--
                    (A) weigh 8.359 grams;
                    (B) have a diameter of 0.850 inches; and
                    (C) contain 90 percent gold and 10 percent alloy.
            (2) $1 silver coins.--Not more than 350,000 $1 coins, which 
        shall--
                    (A) weigh 26.73 grams;
                    (B) have a diameter of 1.500 inches; and
                    (C) contain not less than 90 percent silver.
    (b) Legal Tender.--The coins minted under this Act shall be legal 
tender, as provided in section 5103 of title 31, United States Code.
    (c) Numismatic Items.--For purposes of section 5134 and 5136 of 
title 31, United States Code, all coins minted under this Act shall be 
considered to be numismatic items.

SEC. 4. DESIGN OF COINS.

    (a) Design Requirements.--
            (1) In general.--The design of the coins minted under this 
        Act shall be emblematic of the life and legacy of Muhammad Ali.
            (2) Design and inscriptions.--On each coin minted under 
        this Act there shall be--
                    (A) a designation of the value of the coin;
                    (B) an inscription of the year 2020; and
                    (C) inscriptions of the words ``Liberty'', ``In God 
                We Trust'', ``United States of America'', and ``E 
                Pluribus Unum''.
    (b) Selection.--The design for the coins minted under this Act 
shall be--
            (1) selected by the Secretary after consultation with the 
        Muhammad Ali Center; and
            (2) reviewed by the Citizens Coinage Advisory Committee.

SEC. 5. ISSUANCE OF COINS.

    (a) Quality of Coins.--Coins minted under this Act shall be issued 
in uncirculated and proof qualities.
    (b) Mint Facility.--Only 1 facility of the United States Mint may 
be used to strike any particular quality of the coins minted under this 
Act.
    (c) Period for Issuance.--The Secretary may issue coins minted 
under this Act only during the 1-year period beginning on January 1, 
2020.

SEC. 6. SALE OF COINS.

    (a) Sale Price.--The coins issued under this Act shall be sold by 
the Secretary at a price equal to the sum of--
            (1) the face value of the coins;
            (2) the surcharge provided in section 7(a) with respect to 
        such coins; and
            (3) the cost of designing and issuing the coins (including 
        labor, materials, dies, use of machinery, overhead expenses, 
        marketing, and shipping).
    (b) Bulk Sales.--The Secretary shall make bulk sales of the coins 
issued under this Act at a reasonable discount.
    (c) Prepaid Orders.--
            (1) In general.--The Secretary shall accept prepaid orders 
        for the coins minted under this Act before the issuance of such 
        coins.
            (2) Discount.--Sale prices with respect to prepaid orders 
        under paragraph (1) shall be at a reasonable discount.

SEC. 7. SURCHARGES.

    (a) In General.--All sales of coins issued under this Act shall 
include a surcharge of--
            (1) $35 per coin for the $5 coin; and
            (2) $10 per coin for the $1 coin.
    (b) Distribution.--Subject to section 5134(f)(1) of title 31, 
United States Code, all surcharges received by the Secretary from the 
sale of coins issued under this Act shall be promptly paid by the 
Secretary as follows:
            (1) Eighty percent of the surcharges shall be paid to the 
        Muhammad Ali Center in Louisville, Kentucky, to ensure growth 
        and innovation in museum programming to research, promote, and 
        educate on the legacy of Muhammad Ali.
            (2) Ten percent of the surcharges shall be paid to the 
        Muhammad Ali Institute for Peace and Justice at the University 
        of Louisville to advance the work, study and practice of 
        peacebuilding, social justice, and violence prevention through 
        the development of innovative educational programs, training, 
        service, and research.
            (3) Ten percent of the surcharges shall be paid to the 
        Muhammad Ali Parkinson Center (MAPC) and Movement Disorder 
        Clinic to continue serving as a resource for Parkinson's 
        disease patients and their families through the provision of 
        diagnosis, treatments, research, and education.
    (c) Audit.--The Comptroller General of the United States shall have 
the right to examine such books, records, documents, and other data of 
each of the organizations referred to in subsection (b) as may be 
related to the expenditures of amounts paid under that subsection.
    (d) Limitations.--Notwithstanding subsection (a), no surcharge may 
be included with respect to the issuance under this Act of any coin 
during a calendar year if, as of the time of such issuance, the 
issuance of such coin would result in the number of commemorative coin 
programs issued during such year to exceed the annual 2 commemorative 
coin program issuance limitation under section 5112(m)(1) of title 31, 
United States Code (as in effect on the date of the enactment of this 
Act). The Secretary of the Treasury may issue guidance to carry out 
this subsection.
[EX A]: Muhammad Ali Commemorative Coin Act This bill requires the Department of the Treasury to mint and issue commemorative coins that emblemize the life and legacy of Muhammad Ali.&nbsp; Surcharges received from the sale of these coins shall be paid to: (1) the Muhammad Ali Center in Louisville, Kentucky; (2) the Muhammad Ali Institute for Peace and Justice at the University of Louisville; and (3) the Muhammad Ali Parkinson Center and Movement Disorder Clinic.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farm and Ranch Risk Management 
Act''.

SEC. 2. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    (a) In General.--Subpart C of part II of subchapter E of chapter 1 
of the Internal Revenue Code of 1986 (relating to taxable year for 
which deductions taken) is amended by inserting after section 468B the 
following:

``SEC. 468C. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    ``(a) Deduction Allowed.--In the case of an individual engaged in 
an eligible farming business or commercial fishing, there shall be 
allowed as a deduction for any taxable year the amount paid in cash by 
the taxpayer during the taxable year to a Farm and Ranch Risk 
Management Account (hereinafter referred to as the `FARRM Account').
    ``(b) Limitation.--
            ``(1) Contributions.--The amount which a taxpayer may pay 
        into the FARRM Account for any taxable year shall not exceed 20 
        percent of so much of the taxable income of the taxpayer 
        (determined without regard to this section) which is 
        attributable (determined in the manner applicable under section 
        1301) to any eligible farming business or commercial fishing.
            ``(2) Distributions.--Distributions from a FARRM Account 
        may not be used to purchase, lease, or finance any new fishing 
        vessel, add capacity to any fishery, or otherwise contribute to 
        the overcapitalization of any fishery. The Secretary of 
        Commerce shall implement regulations to enforce this paragraph.
    ``(c) Eligible Businesses.--For purposes of this section--
            ``(1) Eligible farming business.--The term `eligible 
        farming business' means any farming business (as defined in 
        section 263A(e)(4)) which is not a passive activity (within the 
        meaning of section 469(c)) of the taxpayer.
            ``(2) Commercial fishing.--The term `commercial fishing' 
        has the meaning given such term by section (3) of the Magnuson-
        Stevens Fishery Conservation and Management Act (16 U.S.C. 
        1802) but only if such fishing is not a passive activity 
        (within the meaning of section 469(c)) of the taxpayer.
    ``(d) FARRM Account.--For purposes of this section--
            ``(1) In general.--The term `FARRM Account' means a trust 
        created or organized in the United States for the exclusive 
        benefit of the taxpayer, but only if the written governing 
        instrument creating the trust meets the following requirements:
                    ``(A) No contribution will be accepted for any 
                taxable year in excess of the amount allowed as a 
                deduction under subsection (a) for such year.
                    ``(B) The trustee is a bank (as defined in section 
                408(n)) or another person who demonstrates to the 
                satisfaction of the Secretary that the manner in which 
                such person will administer the trust will be 
                consistent with the requirements of this section.
                    ``(C) The assets of the trust consist entirely of 
                cash or of obligations which have adequate stated 
                interest (as defined in section 1274(c)(2)) and which 
                pay such interest not less often than annually.
                    ``(D) All income of the trust is distributed 
                currently to the grantor.
                    ``(E) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
            ``(2) Account taxed as grantor trust.--The grantor of a 
        FARRM Account shall be treated for purposes of this title as 
        the owner of such Account and shall be subject to tax thereon 
        in accordance with subpart E of part I of subchapter J of this 
        chapter (relating to grantors and others treated as substantial 
        owners).
    ``(e) Inclusion of Amounts Distributed.--
            ``(1) In general.--Except as provided in paragraph (2), 
        there shall be includible in the gross income of the taxpayer 
        for any taxable year--
                    ``(A) any amount distributed from a FARRM Account 
                of the taxpayer during such taxable year, and
                    ``(B) any deemed distribution under--
                            ``(i) subsection (f)(1) (relating to 
                        deposits not distributed within 5 years),
                            ``(ii) subsection (f)(2) (relating to 
                        cessation in eligible farming business), and
                            ``(iii) subparagraph (A) or (B) of 
                        subsection (f)(3) (relating to prohibited 
                        transactions and pledging account as security).
            ``(2) Exceptions.--Paragraph (1)(A) shall not apply to--
                    ``(A) any distribution to the extent attributable 
                to income of the Account, and
                    ``(B) the distribution of any contribution paid 
                during a taxable year to a FARRM Account to the extent 
                that such contribution exceeds the limitation 
                applicable under subsection (b) if requirements similar 
                to the requirements of section 408(d)(4) are met.
        For purposes of subparagraph (A), distributions shall be 
        treated as first attributable to income and then to other 
        amounts.
    ``(f) Special Rules.--
            ``(1) Tax on deposits in account which are not distributed 
        within 5 years.--
                    ``(A) In general.--If, at the close of any taxable 
                year, there is a nonqualified balance in any FARRM 
                Account--
                            ``(i) there shall be deemed distributed 
                        from such Account during such taxable year an 
                        amount equal to such balance, and
                            ``(ii) the taxpayer's tax imposed by this 
                        chapter for such taxable year shall be 
                        increased by 10 percent of such deemed 
                        distribution.
                The preceding sentence shall not apply if an amount 
                equal to such nonqualified balance is distributed from 
                such Account to the taxpayer before the due date 
                (including extensions) for filing the return of tax 
                imposed by this chapter for such year (or, if earlier, 
                the date the taxpayer files such return for such year).
                    ``(B) Nonqualified balance.--For purposes of 
                subparagraph (A), the term `nonqualified balance' means 
                any balance in the Account on the last day of the 
                taxable year which is attributable to amounts deposited 
                in such Account before the 4th preceding taxable year.
                    ``(C) Ordering rule.--For purposes of this 
                paragraph, distributions from a FARRM Account (other 
                than distributions of current income) shall be treated 
                as made from deposits in the order in which such 
                deposits were made, beginning with the earliest 
                deposits.
            ``(2) Cessation in eligible business.--At the close of the 
        first disqualification period after a period for which the 
        taxpayer was engaged in an eligible farming business or 
        commercial fishing, there shall be deemed distributed from the 
        FARRM Account of the taxpayer an amount equal to the balance in 
        such Account (if any) at the close of such disqualification 
        period. For purposes of the preceding sentence, the term 
        `disqualification period' means any period of 2 consecutive 
        taxable years for which the taxpayer is not engaged in an 
eligible farming business or commercial fishing.
            ``(3) Certain rules to apply.--Rules similar to the 
        following rules shall apply for purposes of this section:
                    ``(A) Section 220(f)(8) (relating to treatment on 
                death).
                    ``(B) Section 408(e)(2) (relating to loss of 
                exemption of account where individual engages in 
                prohibited transaction).
                    ``(C) Section 408(e)(4) (relating to effect of 
                pledging account as security).
                    ``(D) Section 408(g) (relating to community 
                property laws).
                    ``(E) Section 408(h) (relating to custodial 
                accounts).
            ``(4) Time when payments deemed made.--For purposes of this 
        section, a taxpayer shall be deemed to have made a payment to a 
        FARRM Account on the last day of a taxable year if such payment 
        is made on account of such taxable year and is made on or 
        before the due date (without regard to extensions) for filing 
        the return of tax for such taxable year.
            ``(5) Individual.--For purposes of this section, the term 
        `individual' shall not include an estate or trust.
            ``(6) Deduction not allowed for self-employment tax.--The 
        deduction allowable by reason of subsection (a) shall not be 
        taken into account in determining an individual's net earnings 
        from self-employment (within the meaning of section 1402(a)) 
        for purposes of chapter 2.
    ``(g) Reports.--The trustee of a FARRM Account shall make such 
reports regarding such Account to the Secretary and to the person for 
whose benefit the Account is maintained with respect to contributions, 
distributions, and such other matters as the Secretary may require 
under regulations. The reports required by this subsection shall be 
filed at such time and in such manner and furnished to such persons at 
such time and in such manner as may be required by such regulations.''.
    (b) Tax on Excess Contributions.--
            (1) Subsection (a) of section 4973 of such Code (relating 
        to tax on excess contributions to certain tax-favored accounts 
        and annuities) is amended by striking ``or'' at the end of 
        paragraph (3), by redesignating paragraph (4) as paragraph (5), 
        and by inserting after paragraph (3) the following:
            ``(4) a FARRM Account (within the meaning of section 
        468C(d)), or''.
            (2) Section 4973 of such Code is amended by adding at the 
        end the following:
    ``(g) Excess Contributions to FARRM Accounts.--For purposes of this 
section, in the case of a FARRM Account (within the meaning of section 
468C(d)), the term `excess contributions' means the amount by which the 
amount contributed for the taxable year to the Account exceeds the 
amount which may be contributed to the Account under section 468C(b) 
for such taxable year. For purposes of this subsection, any 
contribution which is distributed out of the FARRM Account in a 
distribution to which section 468C(e)(2)(B) applies shall be treated as 
an amount not contributed.''.
            (3) The section heading for section 4973 of such Code is 
        amended to read as follows:

``SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN ACCOUNTS, ANNUITIES, 
              ETC.''.

            (4) The table of sections for chapter 43 of such Code is 
        amended by striking the item relating to section 4973 and 
        inserting the following:

                              ``Sec. 4973. Excess contributions to 
                                        certain accounts, annuities, 
                                        etc.''.
    (c) Tax on Prohibited Transactions.--
            (1) Subsection (c) of section 4975 of such Code (relating 
        to tax on prohibited transactions) is amended by adding at the 
        end the following:
            ``(6) Special rule for farrm accounts.--A person for whose 
        benefit a FARRM Account (within the meaning of section 468C(d)) 
        is established shall be exempt from the tax imposed by this 
        section with respect to any transaction concerning such account 
        (which would otherwise be taxable under this section) if, with 
        respect to such transaction, the account ceases to be a FARRM 
        Account by reason of the application of section 468C(f)(3)(A) 
        to such account.''.
            (2) Paragraph (1) of section 4975(e) of such Code is 
        amended by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively, and by inserting after 
        subparagraph (D) the following:
                    ``(E) a FARRM Account described in section 
                468C(d),''.
    (d) Failure To Provide Reports on FARRM Accounts.--Paragraph (2) of 
section 6693(a) of such Code (relating to failure to provide reports on 
certain tax-favored accounts or annuities) is amended by redesignating 
subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, 
and by inserting after subparagraph (B) the following:
                    ``(C) section 468C(g) (relating to FARRM 
                Accounts),''.
    (e) Clerical Amendment.--The table of sections for subpart C of 
part II of subchapter E of chapter 1 of such Code is amended by 
inserting after the item relating to section 468B the following:

                              ``Sec. 468C. Farm and Ranch Risk 
                                        Management Accounts.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
[EX A]: Farm and Ranch Risk Management Act - Amends the Internal Revenue Code to allow an individual engaged in an eligible farming or commercial fishing business a deduction for any taxable year of up to 20 percent of taxable income attributable to the eligible farming or commercial fishing business which was paid in cash by the taxpayer to a Farm and Ranch Risk Management Account (FARRM Account).Includes distributions from a FARRM account in the taxpayer's gross income, and subjects to a special ten percent surtax any distributions not made within five years of contribution. Establishes a tax on excess contributions, but exempts the taxpayer from the tax on certain prohibited transactions.

[EX Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Compete Act of 2007''.

SEC. 2. INTERNAL CONTROL REPORTING AND EVALUATION.

    Subsection (b) of section 404 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7262(b)) is amended to read as follows:
    ``(b) Internal Control Reporting and Evaluation.--
            ``(1) Auditor attestation and report.--With respect to the 
        internal control assessment required by subsection (a), each 
        registered public accounting firm that prepares or issues the 
        audit report for the issuer shall, at the interval determined 
        under paragraph (2), attest to, and report on, the assessment 
        made by the management of the issue. The attestation and report 
        on the management assessment shall focus on the process and 
        system management used to identify and manage risks, identify 
        and implement key controls, and come to a conclusion on the 
        effectiveness of the internal controls over financial 
        reporting. Such attestation and report shall not include a 
        separate opinion on the outcome of the assessment, that is, the 
        auditor shall not issue a separate (pass/fail) opinion on the 
        effectiveness of management's internal controls over financial 
        reporting. Any such attestation shall not be the subject of a 
        separate engagement.
            ``(2) Intervals for attestation and report.--The 
        Commission's regulations under this section shall require that 
        the attestation and report required by paragraph (1) be 
        performed during an initial reporting period, and then at 3-
        year intervals. Such regulations shall require a shorter 
        interval in the event of a major shift in the company's 
        structure or performance, such as a merger, a significant 
        financial restatement, evidence of fraud, or other such events 
        as determined by the Commission.
            ``(3) Standards for attestation and report.--
                    ``(A) Risk-based evaluation.--An attestation made 
                under this subsection shall be made in accordance with 
                standards for attestation engagements issued or adopted 
                by the Board. Such standards shall require that the 
                audit of the management assessment of the internal 
                control of the issuer shall be designed, on the basis 
                of the probability of risk and magnitude of potential 
                harm, to focus on those controls that are critical to 
                the accuracy of the financial statements of the issuer, 
                and be consistent with the materiality standards 
                prescribed by the Commission under paragraph (4). Such 
                standards shall require that the determination by the 
                auditor of the controls that create the greatest risk 
                to the company shall be done in consultation with 
                management of the issuer and shall identify those 
                greatest risks on bases of the characteristics of the 
                industry within which the issuer operates.
                    ``(B) Reliance on the work of others.--The 
                standards issued or adopted by the Board for purposes 
                of implementing the requirements of this subsection 
                shall eliminate duplication of audits and examinations 
                by--
                            ``(i) allowing registered public accounting 
                        firms performing attestations and reports under 
                        this subsection to rely on examinations and 
                        inspections conducted by the Federal and state 
                        regulatory agencies to the extent those 
                        examinations and inspections focus on the 
                        issuer's risk-based internal controls;
                            ``(ii) where the issuer has engaged a 
                        third-party accountant to test and provide 
                        management's assessment of the internal control 
                        systems, permitting--
                                    ``(I) the third-party accountant to 
                                work with registered public accounting 
                                firms performing attestations and 
                                reports under this subsection on 
                                determining the controls to be tested 
                                and the scope of work;
                                    ``(II) the registered public 
                                accounting firms performing 
                                attestations and reports under this 
                                subsection to rely heavily on the work 
                                of the third-party accountant during 
                                the attestation engagement to avoid 
                                repetitive testing; and
                                    ``(III) management of the issuer to 
                                communicate openly with the registered 
                                public accounting firms performing 
                                attestations and reports under this 
                                subsection on all aspects of its 
                                internal controls.
                    ``(C) Definition.--For purposes of subparagraph 
                (B)(ii), the term `third-party accountant' means a 
                registered public accounting firm other than the 
                registered public accounting firm that is engaged to 
                perform the attestation and report under this 
                subsection.
            ``(4) Materiality standard.--The Commission shall develop a 
        standard of materiality for the conduct of the assessment and 
        report on an internal control under this subsection that shall 
        be based on whether the internal control has a material affect 
        on the company's financial statements and is significant to the 
        issuer's overall financial status.''.

SEC. 3. SMALLER PUBLIC COMPANY EXEMPTION FROM INTERNAL CONTROL 
              PROVISION.

    Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is 
amended by adding at the end the following new subsection:
    ``(c) Smaller Public Company Exemption.--
            ``(1) Voluntary compliance.--A smaller public company shall 
        not be subject to the requirements of this section with respect 
        to any annual report unless such company voluntarily elects to 
        comply with such requirements, in accordance with regulations 
        prescribed by the Commission. Any smaller company that does not 
        elect to comply with such requirements with respect to an 
        annual report shall, in accordance with such regulations, 
        disclose that noncompliance in such report.
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `smaller public company' means an issuer for which an annual 
        report is required by section 13(a) or 15(d) of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) that--
                    ``(A) has a total market capitalization at the 
                beginning of the relevant reporting period of less than 
                $700,000,000;
                    ``(B) has total product and services revenue for 
                that reporting period of less than $125,000,000; or
                    ``(C) has, at the beginning of the relevant 
                reporting period, fewer than 1500 record beneficial 
                holders.''.

SEC. 4. COMPETITION FOR AUDITING SERVICES.

    (a) Study Required.--The Commission and the Board shall conduct a 
study examining the lack of, and impediments to, robust competition for 
the performance of audits for issuers.
    (b) Subjects of Study.--The study required by this section shall 
examine--
            (1) the causes for, and the measures that may be taken to 
        alleviate, the concentration of audit performance in only four 
        large public accounting firms capable of servicing the larger 
        issuers;
            (2) the extent to which the Commission and the Board may, 
        under existing statutes, take reasonable steps--
                    (A) to increase the number of qualified accounting 
                firms; and
                    (B) to eliminate de minimis conflict of interest 
                provisions; and
            (3) methods that may be undertaken for encouraging--
                    (A) the largest public accounting firms to partner 
                with smaller public accounting firms; and
                    (B) coalitions among smaller public accounting 
                firms to compete for business for larger more complex 
                issuers.
    (c) Report.--Within 6 months after the date of enactment 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 existing statutes, 
        regulations, and standards to alleviate 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 Commission 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 securities 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 enactment 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--
                    (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 relation to
                    (B) the relative--
                            (i) reduction in the level of risk to 
                        investors; 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 increase in such confidence.

SEC. 6. DEFINITIONS.

    For purposes of this Act, the terms ``audit'', ``Board'', 
``Commission'', ``issuer'', and ``public accounting firm'' have the 
meanings given such terms in section 2 of the Sarbanes-Oxley Act of 
2002 (15 U.S.C. 7201).
[EX A]:
Compete Act of 2007 - Amends the Sarbanes-Oxley Act of 2002 to revise requirements for the internal control assessment component of a securities issuer's annual report.

Requires the attestation and report by a registered public accounting firm on an issuer's management assessment of its internal control structure and procedures to focus upon the process and system used by management to identify and manage risks, identify and implement key controls, and come to a conclusion on the effectiveness of the internal controls over financial reporting.

Prohibits an auditor's attestation and report from including a separate (pass/fail) opinion on the effectiveness of such internal controls.

Requires such attestation and report to be performed at three-year intervals.

Prescribes standards for such attestations and reports, including a risk-based evaluation.

Permits attestations and reports to rely on examinations and inspections by federal and state regulatory agencies.

Instructs the Securities and Exchange Commission to develop a standard of materiality for such assessments and reports based upon whether the internal control has a material effect on the company's financial statements and is significant to the issuer's overall financial status.

Exempts a smaller public company from the requirements for management assessment of internal controls, unless it voluntarily elects to comply with them.