PUBLIC LAW 107-204-JULY 30,2002 116STAT.757 he saron,under accton ondond mcnan nt the t ter the Bo to convene. as we as othe m udin to make recomafts) or other stand The Board shal of investors,to implement. TED PROFESSIONAL GROUPS OF ba enda of such de priate to increas he Board shall re ond in a timely to changes in over shall ort the worl 3 and(④of sub SEC.104.INSPECTIONS OF REGISTERED PUBLIC ACCOUNTING FIRMS 15USC7214 inspections to asse 。cerd rintem s Act,the ru es of the Board.the the Commi ith ite required by this each ed hat PUBLIC LAW 107–204—JULY 30, 2002 116 STAT. 757 Commission under section 101(d), and such standards shall be separately approved by the Commission at the time of that determination, without regard to the procedures required by section 107 that otherwise would apply to the approval of rules of the Board. (4) ADVISORY GROUPS.—The Board shall convene, or authorize its staff to convene, such expert advisory groups as may be appropriate, which may include practicing account￾ants and other experts, as well as representatives of other interested groups, subject to such rules as the Board may prescribe to prevent conflicts of interest, to make recommenda￾tions concerning the content (including proposed drafts) of auditing, quality control, ethics, independence, or other stand￾ards required to be established under this section. (b) INDEPENDENCE STANDARDS AND RULES.—The Board shall establish such rules as may be necessary or appropriate in the public interest or for the protection of investors, to implement, or as authorized under, title II of this Act. (c) COOPERATION WITH DESIGNATED PROFESSIONAL GROUPS OF ACCOUNTANTS AND ADVISORY GROUPS.— (1) IN GENERAL.—The Board shall cooperate on an ongoing basis with professional groups of accountants designated under subsection (a)(3)(A) and advisory groups convened under sub￾section (a)(4) in the examination of the need for changes in any standards subject to its authority under subsection (a), recommend issues for inclusion on the agendas of such des￾ignated professional groups of accountants or advisory groups, and take such other steps as it deems appropriate to increase the effectiveness of the standard setting process. (2) BOARD RESPONSES.—The Board shall respond in a timely fashion to requests from designated professional groups of accountants and advisory groups referred to in paragraph (1) for any changes in standards over which the Board has authority. (d) EVALUATION OF STANDARD SETTING PROCESS.—The Board shall include in the annual report required by section 101(h) the results of its standard setting responsibilities during the period to which the report relates, including a discussion of the work of the Board with any designated professional groups of accountants and advisory groups described in paragraphs (3)(A) and (4) of sub￾section (a), and its pending issues agenda for future standard setting projects. SEC. 104. INSPECTIONS OF REGISTERED PUBLIC ACCOUNTING FIRMS. (a) IN GENERAL.—The Board shall conduct a continuing pro￾gram of inspections to assess the degree of compliance of each registered public accounting firm and associated persons of that firm with this Act, the rules of the Board, the rules of the Commis￾sion, or professional standards, in connection with its performance of audits, issuance of audit reports, and related matters involving issuers. (b) INSPECTION FREQUENCY.— (1) IN GENERAL.—Subject to paragraph (2), inspections required by this section shall be conducted— (A) annually with respect to each registered public accounting firm that regularly provides audit reports for more than 100 issuers; and 15 USC 7214. VerDate 11-MAY-2000 18:56 Aug 07, 2002 Jkt 099139 PO 00204 Frm 00013 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL204.107 APPS24 PsN: PUBL204