---
kind: "section"
citation: "15 U.S.C. § 7215"
title: "15"
title_heading: "Commerce and Trade"
number: "7215"
heading: "Investigations and disciplinary proceedings"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/7215"
units:
  - "Chapter 98 — Public Company Accounting Reform and Corporate Responsibility"
  - "Subchapter I — Public Company Accounting Oversight Board"
---

# §7215. Investigations and disciplinary proceedings

- (a) **In general—** The [Board](/usc/15/7201.md?p=5) shall establish, by rule, subject to the requirements of this section, fair procedures for the investigation and disciplining of [registered public accounting firms](/usc/15/7201.md?p=12) and associated [persons](/usc/15/7a.md?p=6) of such firms.
- (b) **Investigations—**
  - (1) **Authority—** In accordance with the [rules of the Board](/usc/15/7201.md?p=13), the [Board](/usc/15/7201.md?p=5) may conduct an investigation of any act or practice, or omission to act, by a [registered public accounting firm](/usc/15/7201.md?p=12), any associated [person](/usc/15/7a.md?p=6) of such firm, or both, that may violate any provision of this Act, the [rules of the Board](/usc/15/7201.md?p=13), the provisions of the [securities laws](/usc/15/7201.md?p=15) relating to the preparation and issuance of [audit reports](/usc/15/7220.md?p=2) and the obligations and liabilities of accountants with respect thereto, including the rules of the [Commission](/usc/15/7201.md?p=6) issued under this Act, or [professional standards](/usc/15/7220.md?p=5), regardless of how the act, practice, or omission is brought to the attention of the [Board](/usc/15/7201.md?p=5).
  - (2) **Testimony and document production—** In addition to such other actions as the [Board](/usc/15/7201.md?p=5) determines to be necessary or appropriate, the [rules of the Board](/usc/15/7201.md?p=13) may—
    - (A) require the testimony of the firm or of any [person](/usc/15/7a.md?p=6) associated with a [registered public accounting firm](/usc/15/7201.md?p=12), with respect to any matter that the [Board](/usc/15/7201.md?p=5) considers relevant or material to an investigation;
    - (B) require the production of [audit](/usc/15/7220.md?p=1) work papers and any other document or information in the possession of a [registered public accounting firm](/usc/15/7201.md?p=12) or any associated [person](/usc/15/7a.md?p=6) thereof, wherever domiciled, that the [Board](/usc/15/7201.md?p=5) considers relevant or material to the investigation, and may inspect the books and records of such firm or associated [person](/usc/15/7a.md?p=6) to verify the accuracy of any documents or information supplied;
    - (C) request the testimony of, and production of any document in the possession of, any other [person](/usc/15/7a.md?p=6), including any client of a [registered public accounting firm](/usc/15/7201.md?p=12) that the [Board](/usc/15/7201.md?p=5) considers relevant or material to an investigation under this section, with appropriate notice, subject to the needs of the investigation, as permitted under the [rules of the Board](/usc/15/7201.md?p=13); and
    - (D) provide for procedures to seek issuance by the [Commission](/usc/15/7201.md?p=6), in a manner established by the [Commission](/usc/15/7201.md?p=6), of a subpoena to require the testimony of, and production of any document in the possession of, any [person](/usc/15/7a.md?p=6), including any client of a [registered public accounting firm](/usc/15/7201.md?p=12), that the [Board](/usc/15/7201.md?p=5) considers relevant or material to an investigation under this section.
  - (3) **Noncooperation with investigations—**
    - (A) **In general—** If a [registered public accounting firm](/usc/15/7201.md?p=12) or any associated [person](/usc/15/7a.md?p=6) thereof refuses to testify, produce documents, or otherwise cooperate with the [Board](/usc/15/7201.md?p=5) in connection with an investigation under this section, the [Board](/usc/15/7201.md?p=5) may—
      - (i) suspend or bar such [person](/usc/15/7a.md?p=6) from being associated with a [registered public accounting firm](/usc/15/7201.md?p=12), or require the [registered public accounting firm](/usc/15/7201.md?p=12) to end such association;
      - (ii) suspend or revoke the registration of the [public accounting firm](/usc/15/7201.md?p=11); and
      - (iii) invoke such other lesser sanctions as the [Board](/usc/15/7201.md?p=5) considers appropriate, and as specified by rule of the [Board](/usc/15/7201.md?p=5).
    - (B) **Procedure—** Any action taken by the [Board](/usc/15/7201.md?p=5) under this paragraph shall be subject to the terms of [section 7217(c) of this title](/usc/15/7217.md?p=c).
  - (4) **Coordination and referral of investigations—**
    - (A) **Coordination—** The [Board](/usc/15/7201.md?p=5) shall notify the [Commission](/usc/15/7201.md?p=6) of any pending [Board](/usc/15/7201.md?p=5) investigation involving a potential violation of the [securities laws](/usc/15/7201.md?p=15), and thereafter coordinate its work with the work of the [Commission](/usc/15/7201.md?p=6)’s Division of Enforcement, as necessary to protect an ongoing [Commission](/usc/15/7201.md?p=6) investigation.
    - (B) **Referral—** The [Board](/usc/15/7201.md?p=5) may refer an investigation under this section—
      - (i) to the [Commission](/usc/15/7201.md?p=6);
      - (ii) to a [self-regulatory organization](/usc/15/7220.md?p=6), in the case of an investigation that concerns an [audit report](/usc/15/7220.md?p=2) for a [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) that is under the jurisdiction of such [self-regulatory organization](/usc/15/7220.md?p=6);
      - (iii) to any other Federal functional regulator (as defined in [section 6809 of this title](/usc/15/6809.md)), in the case of an investigation that concerns an [audit report](/usc/15/7220.md?p=2) for an institution that is subject to the jurisdiction of such regulator; and
      - (iv) at the direction of the [Commission](/usc/15/7201.md?p=6), to—
        - (I) the Attorney General of the United States;
        - (II) the attorney general of 1 or more [States](/usc/15/7201.md?p=16); and
        - (III) the [appropriate State regulatory authority](/usc/15/7201.md?p=1).
  - (5) **Use of documents—**
    - (A) **Confidentiality—** Except as provided in subparagraphs [(B)](#b-5-B) and [(C)](#b-5-C), all documents and information prepared or received by or specifically for the [Board](/usc/15/7201.md?p=5), and deliberations of the [Board](/usc/15/7201.md?p=5) and its employees and agents, in connection with an inspection under [section 7214 of this title](/usc/15/7214.md) or with an investigation under this section, shall be confidential and privileged as an evidentiary matter (and shall not be subject to civil discovery or other legal process) in any proceeding in any Federal or [State](/usc/15/7201.md?p=16) court or administrative agency, and shall be exempt from disclosure, in the hands of an agency or establishment of the Federal Government, under the Freedom of Information Act ([5 U.S.C. 552a](/usc/5/552a.md)),[^1] or otherwise, unless and until presented in connection with a public proceeding or released in accordance with [subsection (c)](#c).
    - (B) **Availability to Government agencies—** Without the loss of its status as confidential and privileged in the hands of the [Board](/usc/15/7201.md?p=5), all information referred to in [subparagraph (A)](#b-5-A) may—
      - (i) be made available to the [Commission](/usc/15/7201.md?p=6); and
      - (ii) in the discretion of the [Board](/usc/15/7201.md?p=5), when determined by the [Board](/usc/15/7201.md?p=5) to be necessary to accomplish the purposes of this Act or to protect investors, be made available to—
        - (I) the Attorney General of the United States;
        - (II) the appropriate Federal functional regulator (as defined in [section 6809 of this title](/usc/15/6809.md)), other than the [Commission](/usc/15/7201.md?p=6), and the Director of the Federal Housing Finance Agency, with respect to an [audit report](/usc/15/7220.md?p=2) for an institution subject to the jurisdiction of such regulator;
        - (III) [State](/usc/15/7201.md?p=16) attorneys general in connection with any criminal investigation;
        - (IV) any [appropriate State regulatory authority](/usc/15/7201.md?p=1); and
        - (V) a [self-regulatory organization](/usc/15/7220.md?p=6), with respect to an [audit report](/usc/15/7220.md?p=2) for a [broker](/usc/15/7220.md?p=3) or [dealer](/usc/15/7220.md?p=4) that is under the jurisdiction of such [self-regulatory organization](/usc/15/7220.md?p=6),

      each of which shall maintain such information as confidential and privileged.

    - (C) **Availability to foreign oversight authorities—** Without the loss of its status as confidential and privileged in the hands of the [Board](/usc/15/7201.md?p=5), all information referred to in [subparagraph (A)](#b-5-A) that relates to a [public accounting firm](/usc/15/7201.md?p=11) that a foreign government has empowered a [foreign auditor oversight authority](/usc/15/7201.md?p=17) to inspect or otherwise enforce laws with respect to, may, at the discretion of the [Board](/usc/15/7201.md?p=5), be made available to the [foreign auditor oversight authority](/usc/15/7201.md?p=17), if—
      - (i) the [Board](/usc/15/7201.md?p=5) finds that it is necessary to accomplish the purposes of this Act or to protect investors;
      - (ii) the [foreign auditor oversight authority](/usc/15/7201.md?p=17) provides—
        - (I) such assurances of confidentiality as the [Board](/usc/15/7201.md?p=5) may request;
        - (II) a description of the applicable information systems and controls of the [foreign auditor oversight authority](/usc/15/7201.md?p=17); and
        - (III) a description of the laws and regulations of the foreign government of the [foreign auditor oversight authority](/usc/15/7201.md?p=17) that are relevant to information access; and
      - (iii) the [Board](/usc/15/7201.md?p=5) determines that it is appropriate to share such information.
  - (6) **Immunity—** Any employee of the [Board](/usc/15/7201.md?p=5) engaged in carrying out an investigation under this Act shall be immune from any civil liability arising out of such investigation in the same manner and to the same extent as an employee of the Federal Government in similar circumstances.
- (c) **Disciplinary procedures—**
  - (1) **Notification; recordkeeping—** The [rules of the Board](/usc/15/7201.md?p=13) shall provide that in any proceeding by the [Board](/usc/15/7201.md?p=5) to determine whether a [registered public accounting firm](/usc/15/7201.md?p=12), or an associated [person](/usc/15/7a.md?p=6) thereof, should be disciplined, the [Board](/usc/15/7201.md?p=5) shall—
    - (A) bring specific charges with respect to the firm or associated [person](/usc/15/7a.md?p=6);
    - (B) notify such firm or associated [person](/usc/15/7a.md?p=6) of, and provide to the firm or associated [person](/usc/15/7a.md?p=6) an opportunity to defend against, such charges; and
    - (C) keep a record of the proceedings.
  - (2) **Public hearings—** Hearings under this section shall not be public, unless otherwise ordered by the [Board](/usc/15/7201.md?p=5) for good cause shown, with the consent of the parties to such hearing.
  - (3) **Supporting statement—** A determination by the [Board](/usc/15/7201.md?p=5) to impose a sanction under this subsection shall be supported by a statement setting forth—
    - (A) each act or practice in which the [registered public accounting firm](/usc/15/7201.md?p=12), or associated [person](/usc/15/7a.md?p=6), has engaged (or omitted to engage), or that forms a basis for all or a part of such sanction;
    - (B) the specific provision of this Act, the [securities laws](/usc/15/7201.md?p=15), the [rules of the Board](/usc/15/7201.md?p=13), or [professional standards](/usc/15/7220.md?p=5) which the [Board](/usc/15/7201.md?p=5) determines has been violated; and
    - (C) the sanction imposed, including a justification for that sanction.
  - (4) **Sanctions—** If the [Board](/usc/15/7201.md?p=5) finds, based on all of the facts and circumstances, that a [registered public accounting firm](/usc/15/7201.md?p=12) or associated [person](/usc/15/7a.md?p=6) thereof has engaged in any act or practice, or omitted to act, in violation of this Act, the [rules of the Board](/usc/15/7201.md?p=13), the provisions of the [securities laws](/usc/15/7201.md?p=15) relating to the preparation and issuance of [audit reports](/usc/15/7220.md?p=2) and the obligations and liabilities of accountants with respect thereto, including the rules of the [Commission](/usc/15/7201.md?p=6) issued under this Act, or [professional standards](/usc/15/7220.md?p=5), the [Board](/usc/15/7201.md?p=5) may impose such disciplinary or remedial sanctions as it determines appropriate, subject to applicable limitations under [paragraph (5)](#c-5), including—
    - (A) temporary suspension or permanent revocation of registration under this subchapter;
    - (B) temporary or permanent suspension or bar of a [person](/usc/15/7a.md?p=6) from further association with any [registered public accounting firm](/usc/15/7201.md?p=12);
    - (C) temporary or permanent limitation on the activities, functions, or operations of such firm or [person](/usc/15/7a.md?p=6) (other than in connection with required additional professional education or training);
    - (D) a civil money penalty for each such violation, in an amount equal to—
      - (i) not more than $100,000 for a natural [person](/usc/15/7a.md?p=6) or $2,000,000 for any other [person](/usc/15/7a.md?p=6); and
      - (ii) in any case to which [paragraph (5)](#c-5) applies, not more than $750,000 for a natural [person](/usc/15/7a.md?p=6) or $15,000,000 for any other [person](/usc/15/7a.md?p=6);
    - (E) censure;
    - (F) required additional professional education or training; or
    - (G) any other appropriate sanction provided for in the [rules of the Board](/usc/15/7201.md?p=13).
  - (5) **Intentional or other knowing conduct—** The sanctions and penalties described in subparagraphs [(A)](#c-4-A) through [(C)](#c-4-C) and [(D)(ii)](#c-4-D-ii) of paragraph (4) shall only apply to—
    - (A) intentional or knowing conduct, including reckless conduct, that results in violation of the applicable statutory, regulatory, or professional standard; or
    - (B) repeated instances of negligent conduct, each resulting in a violation of the applicable statutory, regulatory, or professional standard.
  - (6) **Failure to supervise—**
    - (A) **In general—** The [Board](/usc/15/7201.md?p=5) may impose sanctions under this section on a registered accounting firm or upon any [person](/usc/15/7a.md?p=6) who is, or at the time of the alleged failure reasonably to supervise was, a supervisory [person](/usc/15/7a.md?p=6) of such firm, if the [Board](/usc/15/7201.md?p=5) finds that—
      - (i) the firm has failed reasonably to supervise an associated [person](/usc/15/7a.md?p=6), either as required by the [rules of the Board](/usc/15/7201.md?p=13) relating to auditing or quality control standards, or otherwise, with a view to preventing violations of this Act, the [rules of the Board](/usc/15/7201.md?p=13), the provisions of the [securities laws](/usc/15/7201.md?p=15) relating to the preparation and issuance of [audit reports](/usc/15/7220.md?p=2) and the obligations and liabilities of accountants with respect thereto, including the rules of the [Commission](/usc/15/7201.md?p=6) under this Act, or [professional standards](/usc/15/7220.md?p=5); and
      - (ii) such associated [person](/usc/15/7a.md?p=6) commits a violation of this Act, or any of such rules, laws, or standards.
    - (B) **Rule of construction—** No current or former supervisory [person](/usc/15/7a.md?p=6) of a [registered public accounting firm](/usc/15/7201.md?p=12) shall be deemed to have failed reasonably to supervise any associated [person](/usc/15/7a.md?p=6) for purposes of [subparagraph (A)](#c-6-A), if—
      - (i) there have been established in and for that firm procedures, and a system for applying such procedures, that comply with applicable [rules of the Board](/usc/15/7201.md?p=13) and that would reasonably be expected to prevent and detect any such violation by such associated [person](/usc/15/7a.md?p=6); and
      - (ii) such [person](/usc/15/7a.md?p=6) has reasonably discharged the duties and obligations incumbent upon that [person](/usc/15/7a.md?p=6) by reason of such procedures and system, and had no reasonable cause to believe that such procedures and system were not being complied with.
  - (7) **Effect of suspension—**
    - (A) **Association with a public accounting firm—** It shall be unlawful for any [person](/usc/15/7a.md?p=6) that is suspended or barred from being associated with a [registered public accounting firm](/usc/15/7201.md?p=12) under this subsection willfully to become or remain associated with any [registered public accounting firm](/usc/15/7201.md?p=12), or for any [registered public accounting firm](/usc/15/7201.md?p=12) that knew, or, in the exercise of reasonable care should have known, of the suspension or bar, to permit such an association, without the consent of the [Board](/usc/15/7201.md?p=5) or the [Commission](/usc/15/7201.md?p=6).
    - (B) **Association with an issuer, broker, or dealer—** It shall be unlawful for any [person](/usc/15/7a.md?p=6) that is suspended or barred from being associated with a [registered public accounting firm](/usc/15/7201.md?p=12) under this subsection willfully to become or remain associated with any [issuer](/usc/15/7201.md?p=7), [broker](/usc/15/7220.md?p=3), or [dealer](/usc/15/7220.md?p=4) in an accountancy or a financial management capacity, and for any [issuer](/usc/15/7201.md?p=7), [broker](/usc/15/7220.md?p=3), or [dealer](/usc/15/7220.md?p=4) that knew, or in the exercise of reasonable care should have known, of such suspension or bar, to permit such an association, without the consent of the [Board](/usc/15/7201.md?p=5) or the [Commission](/usc/15/7201.md?p=6).
- (d) **Reporting of sanctions—**
  - (1) **Recipients—** If the [Board](/usc/15/7201.md?p=5) imposes a disciplinary sanction, in accordance with this section, the [Board](/usc/15/7201.md?p=5) shall report the sanction to—
    - (A) the [Commission](/usc/15/7201.md?p=6);
    - (B) any [appropriate State regulatory authority](/usc/15/7201.md?p=1) or any foreign accountancy licensing [board](/usc/15/7201.md?p=5) with which such firm or [person](/usc/15/7a.md?p=6) is licensed or certified; and
    - (C) the public (once any stay on the imposition of such sanction has been lifted).
  - (2) **Contents—** The information reported under [paragraph (1)](#d-1) shall include—
    - (A) the name of the sanctioned [person](/usc/15/7a.md?p=6);
    - (B) a description of the sanction and the basis for its imposition; and
    - (C) such other information as the [Board](/usc/15/7201.md?p=5) deems appropriate.
- (e) **Stay of sanctions—**
  - (1) **In general—** Application to the [Commission](/usc/15/7201.md?p=6) for review, or the institution by the [Commission](/usc/15/7201.md?p=6) of review, of any disciplinary action of the [Board](/usc/15/7201.md?p=5) shall operate as a stay of any such disciplinary action, unless and until the [Commission](/usc/15/7201.md?p=6) orders (summarily or after notice and opportunity for hearing on the question of a stay, which hearing may consist solely of the submission of affidavits or presentation of oral arguments) that no such stay shall continue to operate.
  - (2) **Expedited procedures—** The [Commission](/usc/15/7201.md?p=6) shall establish for appropriate cases an expedited procedure for consideration and determination of the question of the duration of a stay pending review of any disciplinary action of the [Board](/usc/15/7201.md?p=5) under this subsection.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 107–204, title I, § 105, July 30, 2002, 116 Stat. 759; Pub. L. 110–289, div. A, title I, § 1161(h), July 30, 2008, 122 Stat. 2781; Pub. L. 111–203, title IX, §§ 929F(h), 981(b), (c), 982(f), (i), (j), July 21, 2010, 124 Stat. 1855, 1926, 1927, 1929–1931.)

## Notes

### Editorial Notes

### References in Text

This Act, referred to in subsecs. (b)(1), (5)(B)(ii), (C)(i), (6) and (c)(3)(B), (4), (6)(A), is Pub. L. 107–204, July 30, 2002, 116 Stat. 745, known as the Sarbanes-Oxley Act of 2002. For complete classification of this Act to the Code, see Tables.

The Freedom of Information Act, referred to in subsec. (b)(5)(A), is section 552 of Title 5, Government Organization and Employees. Section 552a of Title 5 is commonly known as the “Privacy Act”.

### Amendments

2010—Subsec. (b)(4)(B)(ii) to (iv). Pub. L. 111–203, § 982(i), added cl. (ii) and redesignated former cls. (ii) and (iii) as (iii) and (iv), respectively.

Subsec. (b)(5)(A). Pub. L. 111–203, § 981(c), substituted “subparagraphs (B) and (C)” for “subparagraph (B)”.

Subsec. (b)(5)(B)(ii)(V). Pub. L. 111–203, § 982(j), added subcl. (V).

Subsec. (b)(5)(C). Pub. L. 111–203, § 981(b), added subpar. (C).

Subsec. (c)(6)(A). Pub. L. 111–203, § 929F(h)(1), substituted “any person who is, or at the time of the alleged failure reasonably to supervise was, a supervisory person” for “the supervisory personnel” in introductory provisions.

Subsec. (c)(6)(B). Pub. L. 111–203, § 929F(h)(2), in introductory provisions, substituted “No current or former supervisory person” for “No associated person” and “any associated person” for “any other person”.

Subsec. (c)(7)(B). Pub. L. 111–203, § 982(f), in heading, inserted “, broker, or dealer” after “issuer” and, in text, substituted “a registered public accounting firm under this subsection” for “an issuer under this subsection” and “any issuer, broker, or dealer” for “any issuer” in two places.

2008—Subsec. (b)(5)(B)(ii)(II). Pub. L. 110–289 inserted “and the Director of the Federal Housing Finance Agency,” after “Commission,”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.