A bill to amend the Securities Exchange Act of 1934 to require audits performed under the Federal securities laws to include reasonable procedures for financial fraud detection, and to require that auditors report fraudulent activities to appropriate enforcement and regulatory authorities.
Financial Fraud Detection and Disclosure Act of 1986 - Amends the Securities Exchange Act of 1934 to prescribe auditing standards for the detection and disclosure of financial irregularities.
Requires auditors or examiners to report suspected illegal activity detected during an audit required by the securities laws to the Securities and Exchange Commission and to appropriate law enforcement authorities. Requires such Commission to report to the Attorney General and to appropriate law enforcement authorities the information received from auditors regarding suspected illegal activity.
Introduced in House
Introduced in House
Referred to House Committee on Energy and Commerce.
Referred to Subcommittee on Telecommunications, Consumer Protection and Finance.
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