Section 981

SEC. 981. AUTHORITY TO SHARE CERTAIN INFORMATION WITH FOREIGN AUTHORITIES.

(a) Definition.--Section 2(a) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201(a)) is amended by adding at the end the following:

"(17) Foreign auditor oversight authority.--The term `foreign auditor oversight authority' means any governmental body or other entity empowered by a foreign government to conduct inspections of public accounting firms or otherwise to administer or enforce laws related to the regulation of public accounting firms.''.

(b) Availability to Share Information.--Section 105(b)(5) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)) is amended by adding at the end the following:

"(C) Availability to foreign oversight authorities.--Without the loss of its status as confidential and privileged in the hands of the Board, all information referred to in subparagraph (A) that relates to a public accounting firm that a foreign government has empowered a foreign auditor oversight authority to inspect or otherwise enforce laws with respect to, may, at the discretion of the Board, be made available to the foreign auditor oversight authority, if--

"(i) the Board finds that it is necessary to accomplish the purposes of this Act or to protect investors;
"(ii) the foreign auditor oversight authority provides--

"(I) such assurances of confidentiality as the Board may request;
"(II) a description of the applicable information systems and controls of the foreign auditor oversight authority; and
"(III) a description of the laws and regulations of the foreign government of the foreign auditor oversight authority that are relevant to information access; and
"(iii) the Board determines that it is appropriate to share such information.''.

(c) Conforming Amendment.--Section 105(b)(5)(A) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(A)) is amended by striking ``subparagraph (B)'' and inserting ``subparagraphs (B) and (C)''.