Accounting Reform

America's 'Investor Class' is larger and stronger than ever before. At the same time, the integrity in our accounting system is key to our economic security and prosperity. We need to be sure that the system meant to keep America's investments safe and secure is as transparent as possible. By pouring light onto the process of auditing and accounting, we'll provide the assurance investors need. Creating public regulatory organizations to conduct quality reviews gives investors a powerful watchdog. And broadening SEC procedures for reviewing financial statements will keep all parties involved honest.

With this in mind, the House of Representatives, with my support, recently approved a set of bipartisan reforms designed to improve investor confidence in the accounting system. The Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002, H.R. 3763, passed 334-90.

H.R. 3763 will help reform the system by:

• Restoring confidence in accounting;
• Increasing corporate disclosure and responsibility;
• Protecting 401(k) plans;
• Strengthening the SEC; and
• Reducing analyst conflicts of interest.

We’ve seen what faulty accounting can do to a family’s future, and we simply can’t afford to let it happen again. These common sense reforms are Congress’ response to the concerns of millions of America’s working families saving and investing in their own futures.