House Approves Bipartisan Accounting Reform

April 24, 2002

WASHINGTON, DC – Calling integrity in our accounting system key to economic security and prosperity, Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, voted today to approve 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.

“America’s ‘Investor Class’ is larger and stronger than ever before,” Dreier said. “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.”

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.

Dreier commended the work of the Financial Services Committee and specifically the leadership of Chairman Mike Oxley (R-OH) in bringing H.R. 3763 to the floor. He noted that the strong bipartisan support in the final vote and in the committee was evidence of the importance of the issues.

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