PUBLIC LAW 107-204-JULY 30,2002 116STAT.751 duties functions as the Board note high pro ards among ith this Act the rules of the Bos urities h resp d manage the perations of of f the Board n (includin ATIONThe members of the Board ng and o that the Board uirements o red ms ons of he Boam OMPOSITION.The Board shall hav 5 member who have promi on ted mmitment a nd th f the finaneial dis red ofis nbitesforandnan sure onl ountant for at least Each member of the 女 any profits of determ ned by rule of othe the ndard rangement (4)A than 90 days after the Deadline an of th。Board of PUBLIC LAW 107–204—JULY 30, 2002 116 STAT. 751 registered public accounting firms and associated persons of such firms, in accordance with section 105; (5) perform such other duties or functions as the Board (or the Commission, by rule or order) determines are necessary or appropriate to promote high professional standards among, and improve the quality of audit services offered by, registered public accounting firms and associated persons thereof, or other￾wise to carry out this Act, in order to protect investors, or to further the public interest; (6) enforce compliance with this Act, the rules of the Board, professional standards, and the securities laws relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants with respect thereto, by registered public accounting firms and associated persons thereof; and (7) set the budget and manage the operations of the Board and the staff of the Board. (d) COMMISSION DETERMINATION.—The members of the Board shall take such action (including hiring of staff, proposal of rules, and adoption of initial and transitional auditing and other profes￾sional standards) as may be necessary or appropriate to enable the Commission to determine, not later than 270 days after the date of enactment of this Act, that the Board is so organized and has the capacity to carry out the requirements of this title, and to enforce compliance with this title by registered public accounting firms and associated persons thereof. The Commission shall be responsible, prior to the appointment of the Board, for the planning for the establishment and administrative transition to the Board’s operation. (e) BOARD MEMBERSHIP.— (1) COMPOSITION.—The Board shall have 5 members, appointed from among prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding of the responsibilities for and nature of the financial disclosures required of issuers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures. (2) LIMITATION.—Two members, and only 2 members, of the Board shall be or have been certified public accountants pursuant to the laws of 1 or more States, provided that, if 1 of those 2 members is the chairperson, he or she may not have been a practicing certified public accountant for at least 5 years prior to his or her appointment to the Board. (3) FULL-TIME INDEPENDENT SERVICE.—Each member of the Board shall serve on a full-time basis, and may not, concurrent with service on the Board, be employed by any other person or engage in any other professional or business activity. No member of the Board may share in any of the profits of, or receive payments from, a public accounting firm (or any other person, as determined by rule of the Commission), other than fixed continuing payments, subject to such conditions as the Commission may impose, under standard arrangements for the retirement of members of public accounting firms. (4) APPOINTMENT OF BOARD MEMBERS.— (A) INITIAL BOARD.—Not later than 90 days after the date of enactment of this Act, the Commission, after con￾sultation with the Chairman of the Board of Governors Deadline. VerDate 11-MAY-2000 18:56 Aug 07, 2002 Jkt 099139 PO 00204 Frm 00007 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL204.107 APPS24 PsN: PUBL204